For as long as most of us can remember, Thailand has held the title of Southeast Asia’s tourism champion. Bangkok’s street food and Phuket’s beaches made it the default choice for nearly every type of traveller. But a quiet revolution has taken place just across the Causeway. The latest Malaysia travel news confirms it: for the second year running, Malaysia has overtaken Thailand to become the most visited country in the region.
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This is fantastic news for the Malaysian tourism industry. For Singaporeans, however, it is a bit of a wake-up call. We have grown comfortable treating Malaysia as a spontaneous weekend escape. The era of driving up on a Friday evening without planning might be ending.
Also read: Limited-Time Festivals And Events In Southeast Asia, 2026 Edition
Malaysia overtook Thailand as Southeast Asia’s most visited country for 2025
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Let’s look at what actually happened for both countries in 2025. Malaysia welcomed 38.3 million foreign visitors in just the first 11 months of the year. That’s already more than the country received in all of 2024 combined.
Meanwhile, Thailand recorded 32.9 million arrivals for the full year. According to Bloomberg, that figure represents a 7% drop compared to the previous year. The gap between the two countries is widening, and Malaysia is pulling ahead decisively.
What Tipped the Balance?
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The shift comes down to two factors: what went wrong for Thailand, and what went right for Malaysia.
Thailand faced a challenging year marked by safety concerns. Reports of kidnappings, a deadly earthquake, and severe flooding in key tourist areas all caused hesitation. When people feel uncertain about their safety, they look for alternatives.
Malaysia seized that moment. The government has made entry easier, particularly for Chinese tourists through a visa-free scheme. This has been extended until 2026. Combined with upgrades at KLIA Terminal 1, Malaysia became the easiest choice for millions of visitors looking for a reliable holiday.
What Singaporeans Need to Know
If you are planning a trip to Malaysia soon, you might want to adjust your strategy.
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First, brace for crowds. With nearly 40 million people visiting, the usual hotspots will feel the squeeze. Bukit Bintang, Genting Highlands, and George Town are no longer just competing for space between Singaporeans and locals. They are now absorbing waves of international visitors. That walk-in brunch at your favourite Johor Bahru café? You might need a booking now, especially during school holidays.
Second, expect prices to creep upwards. The Singapore dollar remains strong, but high demand drives prices. When hotels fill up faster, costs naturally rise. “Tourist pricing” is likely to become more common, and decent mid-range hotels could be fully booked months in advance.
Book Early and Fly Smart (yes, even to Malaysia)
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If you want to avoid tourist pricing, the solution is straightforward: stop leaving things to the last minute. For reasonable rates for the year-end holidays, book your accommodation at least 2 months in advance.
There is good news, though. Malaysia’s improved infrastructure means better options for getting there. For those who’ve been keeping track of the Malaysia travel news, KLIA Terminal 1 has gotten a major upgrade to accommodate more flights. Also, increased flight connectivity means flying into Kuala Lumpur is becoming smoother. For Singaporeans dreading the Causeway traffic, a quick budget flight might actually save time and stress.
Look to less well-known destinations
Here is the real opportunity. While the world piles into Kuala Lumpur and Penang, savvy Singaporeans can explore lesser-known gems.
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Ipoh offers incredible food and limestone scenery with a more relaxed vibe than KL. Over in East Malaysia, Kuching delivers fascinating culture and rainforest adventures. Kota Kinabalu serves up island-hopping without the crush you will find on the peninsula. These destinations are growing in popularity, but they are not yet absorbing the same traffic volume as the major hubs. For more travel inspiration, check out our other article, 11 Least Explored Destinations in Malaysia.
The Bottom Line
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Malaysia is entering 2026 as a genuine regional tourism powerhouse. Smart policies and a welcoming atmosphere have earned it the top spot. As the latest Malaysia travel news suggest, the country has now been positioned as a convenient and affordable destination for the world.
For us in Singapore, Malaysia will always be our closest short-trip destination. We just need to accept that it is not our little secret anymore. As long as you plan further ahead and be willing to try somewhere new, and your next adventure can be just as rewarding.
