Malaysia’s tourism industry recorded strong gains in 2025, with over 16.94 million foreign visitors in the first five months, including 1.81 million from China — the fastest-growing source market. Annual tourism revenue is projected to exceed 332 billion ringgit ($69.7 billion), contributing more than 11% to GDP and supporting over 3.5 million jobs. Growth has been driven by improved visa access, stronger air links, and targeted promotions, especially in China. The July launch of a mutual visa-free policy has encouraged Chinese travelers to explore beyond Kuala Lumpur and Penang to destinations such as Sabah and Sarawak.