Smile, it's visit Malaysia Year
IT certainly feels good that Malaysia is now the number one tourist destination in Asean with record-breaking arrivals, overtaking Thailand as the region's most visited country.
In the first quarter of 2025, we had over 10.1 million foreign tourists, with Malaysia seeing a 10% rise in international arrivals year-on-year, generating RM27.5bil in tourism revenue.
That is a 24% increase, with the average spending per visit hitting RM4,300, according to reports.
The challenge now for all of us is to maintain that pole position as we kick off Visit Malaysia Year 2026 (VM2026).
Promoting tourism isn't just the work of people like tourist guides, hoteliers, restaurant owners and drivers — it is the job of every Malaysian, and we should all see ourselves as ambassadors.
These include our Immigration officers, who never seem to put on a smile at entry points, especially airports.
There are also Customs officers who shout at arriving tourists to place their luggage for inspection, especially at busy KLIA2.
Having travelled to 60 countries, I can vouch that many have the same attitude, but I have also experienced when officers smile and welcome me. It made such a big difference.
The immediate test for us will be from Oct 1, when China's annual National Day 'Golden Week' starts.
The one-week holiday is regarded as one of the world's busiest travel periods.
It is an extended holiday for Chinese tourists because it combines public holidays and adjusted weekends, leading to a continuous week off until Oct 8 and more.
According to reports, in 2023, about 11.82 million cross-border trips were made during the combined Mid‑Autumn and National Day 'Golden Week' (Sept 29-Oct 6), averaging 1.48 million border crossings per day – nearly 85% of the 2019 pre-pandemic level.
Last year, Chinese travellers made 7.59 million outbound trips during the October holiday – a 33% increase year-on-year, with the peak day for border crossings coming on Oct 5, with 2.035 million individuals crossing.
Malaysia is a preferred destination among the Chinese for many reasons, which our neighbours cannot match.
The visa-free policy, cultural affinities, affordability, unparalleled destination, diversity and targeted marketing with continued government and industry support have made all this possible.
Over 40 countries have offered visa-free entrance to Chinese tourists because everyone recognises Chinese tourists as the world's top spenders.
They reportedly spent US$196.5bil (RM829.4bil) internationally in 2023.
Malaysia is also just a short four-hour flight from major Chinese cities like Beijing, Shanghai, Chengdu, Xian and Chongqing, with the same time zone.
Our hotels and transportation are excellent with good value for money, and it is certainly cheaper than Singapore or even Thailand, in some cases.
Chinese tourists also prefer not to use cash as it has almost disappeared in their country.
Digital payment integration, such as Alipay, Wechat Pay and automated Customs e-gates have helped.
They also feel welcome here as ethnic Chinese form a significant part of Malaysia's multicultural society and Mandarin is widely spoken, with shared festivals, cuisine, and cultural touchstones.
The new set of younger Chinese tourists no longer comes by the busloads. They prefer to visit Malaysia at their own pace.
The environment and the seas are on their minds, which is why Sabah and Sarawak are top destinations.
They also enjoy our clean beaches and sea, but they cannot understand why Semporna town, the gateway to Sipadan, continues to be an eyesore and a massive waste dump.
Penang and Melaka are popular choices because of their heritage and cultural links to China, especially Hokkien-speaking Xiamen.
Let the numbers speak. According to reports, 3.7 million Chinese tourists visited Malaysia in 2024, soaring +130% year-on-year, with January-September 2024 seeing 2.5 million Chinese arrivals, surpassing 2023 totals.
Malaysia is aiming for five million Chinese visitors in 2025, with tourism receipts from these travellers expected to reach RM30bil.
All this, however, is bad news for Thailand, which used to be the number one spot for Chinese travellers.
While the current political upheavals won't worry China tourists, Thailand is facing a sharp decline in visitors from its most important tourism market.
A mix of safety concerns, rising travel costs, and changing traveller preferences is reportedly driving this dramatic shift.
Public confidence in Thailand took a major dive earlier this year after the high-profile kidnapping of Chinese actor Wang Xing near the Thailand-Myanmar border.
Wang was reportedly abducted by a criminal network linked to regional scam operations, prompting a media frenzy in China and a wave of trip cancellations.
It is said that Chinese social media platforms were flooded with calls to avoid Thailand, with hashtags warning against visiting the country trending for weeks.
The incident reportedly drew attention to the broader issue of scam networks and human trafficking operations along Thailand's border regions – raising alarms about tourist safety.
It reinforced the message in a 2023 China-made movie, No More Bets, which explores the issue of Chinese citizens being trafficked to South-East Asia and forced into online fraud.
The movie is said to be based on real-life events.
Thailand is doing everything to welcome the Chinese, but the damage has been done.
There was more bad news for Thailand. Reports of Thai durians containing Auramine O, a yellow dye and a chemical with potential health risks, being exported to China became major news.
Thailand's loss has become Malaysia's gain, with many opting to come here instead.
And VM2026 aims to attract 35.6 million tourists – a bulk of them from China – with a target of RM147.1bil in tourism revenue.
Let's make this happen together with our smiles and friendliness.
Datuk Seri Wong Chun Wai is a National Journalism Laureate and Bernama chairman.
The views expressed here are solely the writer's own.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
‘We can do more'
THE business community must do more to ensure society cohesiveness, says Projek57 co-founder Colin Swee. Affectionately describing entrepreneurs as 'crazy people', he says the community can give back to the people through their available resources; and Projek57 has been on the ground engaging them to promote positive narratives on uniting Malaysians. 'They are very creative, they are very driven. So we are trying to mobilise them. And a lot of them have big organisations, thousands of staff members.' Projek57 itself has carried out various activities with businesses including Eco World, Touch 'n' Go and Allianz. They held talks, a walk and cycling tours, among others. 'It has been a very interesting endeavour because we met people from different back-grounds; and the business people came and they got their employees involved as well.' Working together: Youth making unity ribbons at a Projek57 workshop. — The Star Projek57's unity ribbon pins are used to spread the message of unity. Swee reiterates a question: Does the forging of unity or cohesion rest solely with the government? 'That is a good question. Everyone relies on the government to do something about it. But for us, this is where we can play our part too as a company, entrepreneurs and members of the public.' He also calls for a shift in mindset about Malaysia's trajectory; social cohesion can be an issue, policies for the betterment of the people remain in place although they are not perfect. 'Many people think Malaysia is in a bad shape. But compared to some countries, we're doing better than we think. 'The United States is one of the richest countries, yet there's real fighting [about the economic pie] and all the wealth is concentrated at the top. 'Malaysia has subsidies. School is free. Our policies aren't perfect, but they're there. Maybe the winds are strong now but we just need to reset the sails. In Malay-sia, I think the wind is actually quite calm. We just need to ride with it.' Projek57 executive director Debbie Choa also urges Malaysians not to give up on their own country too easily. 'A lot of people say, 'Let's just move to Singapore, the US, or Australia'. But we believe there's still so much in Malaysia worth working for. 'People before us have made sacrifices for this country. It is a waste if everyone just runs away. And it's not just Chinese youths. We see it across the board – Malay families, our friends – they're all thinking about leaving. 'But Malaysia still has heart. We just need to believe in it and do the work to make it better.'
The Star
6 hours ago
- The Star
Economic Watch: Booming theme parks highlight China's tourism, consumption potential
SHANGHAI, July 5 (Xinhua) -- The opening of LEGOLAND Shanghai Resort in east China has added momentum to the country's thriving theme park sector, reflecting China's consumption upgrade and potential, as well as its commitment to opening up to the world. The resort in Shanghai, currently the largest LEGOLAND globally and the first in China, offers a new amusement option for Chinese citizens and foreigners visiting this metropolis. The opening of LEGOLAND Shanghai Resort on Saturday coincides with the beginning of the summer vacation, which is a tourism and consumption high season, especially for students. The cultural and tourism industries are becoming important growth drivers -- as the Chinese economy shifts to a consumption-driven pattern. Earlier this year, the Chinese government made it one of its major priorities to boost consumption and stimulate domestic demand across the board. It urged more efforts to foster new forms of cultural business and vigorously develop the tourism industry. Meanwhile, authorities also pledged better services and support for foreign investors, aimed at making China a favored destination for them. Foreign-funded theme parks have both attested to and benefited from these commitments. Notably, Shanghai Disney Resort and Universal Beijing Resort have achieved great success. More diversified demands for tourism products are driving an upgrade in terms of the offerings of this vibrant industry. For tourists who travel during summer holidays or take family trips, thematic or in-depth experience travels are becoming popular choices. This means that theme parks are expected to secure a sharp surge of visitors. Growing tourism consumption has contributed to China's resilient consumer market. In the first quarter of 2025, the number of domestic tourist trips reached over 1.79 billion, representing year-on-year growth of 26.4 percent. Total tourism expenditure hit 1.8 trillion yuan (209.7 billion U.S. dollars) in this period, up 18.6 percent year on year. Thanks to China's visa-free policies and related measures, the popularity of both travel and shopping in China among foreigners has risen, serving as a boost to the country's tourism development. Shanghai, being a prime example in this regard, received nealry 1.26 million foreign tourists in the first quarter of 2025 -- up 61.9 percent year on year. According to the Ministry of Culture and Tourism, from July to August, local authorities will organize 4,300 activities and provide subsidies totaling 570 million yuan to boost cultural and tourism consumption. The thriving tourism industry is injecting momentum into the Chinese economy, which grew 5.4 percent in the first quarter of 2025 and aims for an expansion of about 5 percent this year.
The Star
8 hours ago
- The Star
Analysis - China's intense EV rivalry tests Thailand's local production goals
BANGKOK (Reuters): Hyper-competition in China's electric vehicle sector is spilling over to its biggest market in Asia, Thailand, as smaller players struggle to compete with dominant BYD, putting ambitious local production plans at risk. Neta, among the earliest Chinese EV brands to enter Thailand in 2022, is an example of a struggling automaker finding it difficult to meet the requirements of a demanding government incentive programme meant to boost Thai EV production. Under the scheme, carmakers are exempt from import duties, but were obligated to match import volumes with domestic production in 2024. Citing slowing sales and tightening credit conditions, carmakers asked the government to adjust the scheme and the 2024 production shortfall was rolled over into this year. Neta has said that it cannot produce the required number of cars locally and the government has withheld some payments to the EV maker, said Excise Department official Panupong Sriket, who received a complaint filed last month by 18 Neta dealers in Thailand seeking to recover over 200 million baht ($6.17 million) of allegedly unpaid debt. The complaint, a copy of which was reviewed by Reuters, also detailed missed payments by Neta related to promised support for building showrooms and after-sales service. "I stopped ordering more cars in September because I sensed something was wrong," said Neta dealership owner Saravut Khunpitiluck. "I'm currently suing them." Neta's parent company, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings in China last month, according to state media. Neta and its Chinese parent did not respond to Reuters' requests for comment. MARKET SHARE DECLINE Neta's share of Thailand's EV market peaked at around 12% of EV sales in 2023 when the industry was growing, according to Counterpoint Research data, with BYD having a 49% share that year. In Thailand, a regional auto production and export hub, Chinese brands dominate the EV market with a combined share of more than 70%. The number of Chinese EV brands has doubled in the last year to 18, placing pressure on those that lack the reach of BYD, which has taken over from Tesla as the world's biggest EV maker. In the first five months of this year, new registration of Neta cars - a proxy for sales - slumped 48.5% from the prior year and its share of EV registrations was down to 4%, according to government data. "Neta's downturn in Thailand reflects the fragility of second-tier Chinese EV brands both at home and abroad," said Abhik Mukherjee, an automotive analyst at Counterpoint Research. "Intense price competition and the scale advantages of dominant players have made survival increasingly difficult for smaller companies, particularly in export markets, where margins are slim and robust after-sales support is essential." In Thailand, Neta's biggest international market, it sells three models, with the cheapest Neta V-II Lite priced at 549,000 baht ($16,924) before discounts, compared to market leader BYD's entry-level Dolphin model that is priced at 569,900 baht. Thailand's domestic auto market has become increasingly competitive amid a sluggish economy. "Some Chinese brands have slashed prices by more than 20%,' said Rujipun Assarut, assistant managing director of KResearch, a unit of Thai lender Kasikornbank. "Pricing has become the main strategy to stimulate buying." China's EV overcapacity and price war have pushed automakers to expand abroad, but markets like Thailand are now mirroring the same hyper-competitive pressures, exposing smaller firms to similar risks. 'NO CONFIDENCE' Three years ago, Thailand unveiled an ambitious plan to transform its car industry, long dominated by Japanese majors like Toyota and Honda, to ensure at least 30% of its total auto production was EVs by 2030. The country, which exports about half of its auto output, has drawn more than $3 billion in investments from a clutch of Chinese EV makers, including Neta, who were partly lured to Southeast Asia's second-largest economy by the government incentive scheme. "Neta's case should give the Thai policymakers pause," said Ben Kiatkwankul, partner at Bangkok-based government affairs advisory firm, Maverick Consulting Group. Last December, after a sharp sales contraction, Thailand's Board of Investment gave EV makers an extension to the initial local production timeline to avoid oversupply and a worsening price war. Under the original scheme, local EV production in 2024 was required to match each vehicle imported between February 2022 to December 2023 or the automaker would incur hefty fines. Car manufacturers avoided those fines with the extension carrying over unmet production into this year, but at a higher ratio of 1.5 times imports. Thailand's Board of Investment said in statement to Reuters on Saturday that Neta's issues were related to the financial situation of its parent firm and did not affect the Thai EV industry in the long-term. "The Thai government remains committed to the automotive sector and continues to promote policies supporting the EV industry and related technologies," it said. Siamnat Panassorn, vice president of the Electric Vehicle Association of Thailand, said Neta's issues were company-specific and did not reflect flaws in Thai policies or the market. But external shocks, including geopolitical tensions and the spectre of higher tariffs, have added to the pressure felt by the sector, he said. For Thai Neta dealers like Chatdanai Komrutai, the crisis is deepening. The brand's car owners have taken to social media in droves to share maintenance issues and limited after-sales support and a consumer watchdog agency is inspecting some of those complaints. "Selling cars is difficult right now," Chatdanai said. "There's no confidence." ($1 = 32.4100 baht) (Additional reporting by Panarat Thepgumpanat; Graphics by Pasit Kongkunakornkul; Editing by Devjyot Ghoshal and Jamie Freed) - Reuters
