The warm sparkling seas around Malaysia are recognized as having some of the best diving spots. The tropical waters support an underwater ecosystem of magnificent coral reefs, diverse fish species, sea turtles, and giant clams.

Scuba diving to appreciate the rich marine environment is common, with outstanding dive sites such as Pulau Sipadan (Sipadan Island) and Pulau Layang-layang (Layang-layang Island) in Sabah, as well as Pulau Tioman (Tioman Island), Pulau Redang (Redang Island) and Pulau Perhentian (Perhentian Island) in Peninsula Malaysia's east coast. Wreck diving presents another facet to enjoy in Malaysian waters.

Pulau Labuan (Labuan Island), just off the west coast of Sabah is a haven for wreck diving. The four wrecks around Labuan's waters, namely American, Australian, Blue Water, and Cement Wrecks are accessible to all, but internal exploration is best left to expert divers. In addition, barracuda, groupers and batfish are commonly sighted here.

Off the Sarawak coast, divers can engage in wreck diving at a World War II Japanese troop carrier, the Katori Maru.

On Peninsula Malaysia's east coast, the seas off Lanjut in Johor offers two shipwreck sites, including that of a World War II Japanese frigate, which can be found off Pulau Berhala (Berhala Island).

Diving is not recommended during the monsoon months of November to January in the South China Sea.