Prime Minister Najib Razak, has kept the finance portfolio with himself installed senior party loyalists at other key ministries.
New Cabinet took the oath of office in the presence of Malaysia's King Sultan Mizan Zainal Abidin at the palace in Kuala Lumpur.
"I believe that the effort to reform the country starts with revamping the government, with a new Cabinet with new responsibilities and a new structure," Najib said.
He said his team will serve the people and its performance will be closely monitored through key indicators.
Najib dropped eight ministers from the previous Badawi cabinet which includes 40 deputy ministers but has appointed only seven new faces.
The premier has chosen Ahmad Husni Hanadzlah, a party loyalist with an economics and banking background, as the second finance minister.
S Subramaniam (64) an ethnic Indian and member of the Malaysian Indian Congress, a major component of the ruling Barisan Nasional party, who was the human resources minister in the Abdullah Badawi cabinet retained his portfolio in Najib's cabinet too.
Najib took office on 3rd April taking over from Abdullah Badawi who voluntarily stepped down.