Thailand, which held the champion title for years, was second with 9.55 million, followed by Vietnam (six million) and Singapore (4.31 million), according to official data.
Malaysia recently announced the extension of visa exemption for Chinese travelers for another five years, with an option to extend it for an additional five years until 2036, Home Minister Datuk Seri Saifuddin Nasution Ismail said.
It has also extended its visa-free entry for Indian tourists until 2026.
Meanwhile, Thailand has been hit by a tourism crisis due to safety concerns, especially after the kidnapping of Chinese actor Xing Xing in January, and foreign arrival numbers have been plummeting.