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Malaysia recorded 38.3 million tourist arrivals in 2025, officially outpacing Thailand for the second year running
While Thailand was once the undisputed heavyweight champion of Southeast Asian travel, the kingdom saw international arrivals drop by 7%.
Meanwhile, Malaysia welcomed 38.3 million foreign arrivals in the first 11 months of 2025. This record-breaking figure already exceeded the total number of visitors recorded for the entirety of 2024.
Tourism Malaysia, operating under the Ministry of Tourism, Arts and Culture (MOTAC), attributed this growth to flexible visa policies and major infrastructure improvements
This surge successfully positioned the country as the premier choice for international travellers.
One of the biggest wins was the government's decision to extend visa exemptions for Chinese travellers for another five years. There is even an option to extend this waiver for an additional five years, potentially lasting until 2036.
Indian citizens also enjoy visa-free entry until 2026, targeting two of Asia's largest tourism markets. These strategic moves allowed Malaysia to quietly sharpen its appeal while neighbours struggled with shifting travel preferences.
In contrast, Thailand recorded only 32.9 million arrivals in 2025, marking its first annual decline in a decade outside the pandemic. Foreign tourism revenue in Thailand also fell by 4.7% to 1.53 trillion baht (RM194 billion).
The decline was fuelled by a series of setbacks, including the high-profile abduction of Chinese actor Xing Xing in January, 2025. Safety concerns grew further following a 7.7-magnitude earthquake and military clashes along the Thai-Cambodian border.
Severe flooding and an appreciating baht also made travel more expensive and less accessible for foreign visitors. While the Tourism Authority of Thailand aims to attract 36.7 million visitors in 2026, Malaysia is already gearing up for Visit Malaysia 2026.
With its stable environment and easy-to-navigate infrastructure, Malaysia set a new standard for the region. The country is now well-positioned to maintain its top spot as the go-to destination in Southeast Asia.
