Deputy Prime Minister Ahmad Zahid Hamidi hailed the performance as a "solid foundation" for the Visit Malaysia 2026 (VM2026) campaign, the country's state agency Bernama reported.
Last year, Malaysia received 38 million foreign arrivals.
Speaking after the Tourism and Culture Cabinet Committee meeting, he emphasized that the industry has solidified its position as a primary engine for the country's economic growth and job creation, New Straits Times Online reported.
"The government is strengthening coordination to ensure the tourism industry remains the main driver of the country's economic growth," he said, noting that the strategy aims not only to attract more international visitors but also to extend their length of stay and maximize their spending.
With this outstanding achievement, Malaysia continued to be the tourism champion in Southeast Asia for the second consecutive year.
Thailand, traditionally the region's favorite, ranked second after receiving 32.9 million arrivals for 2025, a 7% year-on-year decrease in what was also the first annual drop in international arrivals in a decade outside the pandemic period, Bloomberg reported.
Once a tourism powerhouse in Southeast Asia, Thailand struggled with setbacks last year due to kidnapping, deadly earthquake, border tensions with Cambodia and severe flooding.