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Adam Nebbs

Travellers' Checks | Can Malaysia’s Desaru Coast compete with Sentosa in Singapore or Indonesia’s Bintan Island?

  • Backed by Malaysia’s sovereign wealth fund, which invested US$1.1 billion in its development, the resort has a slew of luxury hotels and two golf courses
  • Doubts remain over its sustainability, however

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Backed by a US$1.1 billion investment from Malaysia’s sovereign wealth fund, the integrated destination resort, Desaru Coast, hopes to rival other regional resort offerings in Singapore and Indonesia.

The Malaysian government first started developing a resort area around Desaru, on the far south­eastern coast of peninsular Malaysia, back in the 1970s. The first accommodation opened in 1977, and self-catering chalets and later “luxury” hotels drew visitors from Singapore, two hours’ drive away.

Hydrofoil and even helicopter services were planned, but quite a number of people drowned in the treacherous waters off the long, pristine beach (notably a Finnish tourist and the Japanese businessman who tried to save him on New Year’s Day, 1985), and the Desaru Holiday Resort failed to live up to expectations. Western guidebooks – if they mentioned it at all – paid out-of-the-way Desaru scant attention, hotels closed and foreign travellers stayed away.

A few years ago the government decided to invest in the area once again, through its sovereign wealth fund Khazanah Nasional’s Themed Attractions Resorts & Hotels, and it was rebranded as Desaru Coast – a 1,578-hectare “integrated destination resort”. Two golf courses opened, in 2016 and 2017, and a 365-room Hard Rock Hotel and the Desaru Coast Adventure Waterpark opened last year. This month saw the launch of the 275-room Westin Desaru Coast Resort, and a 123-room Anantara resort is due to open later in the year. Even more surprisingly, the high-end One&Only Resorts will soon open its first Southeast Asian property here, too.

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The target market for Desaru Coast includes Hong Kong travellers, but the easiest way there from here involves a flight to Singapore, followed by a 30-minute ferry (running only twice daily on week­days, and four times a day on weekends), then a 30-minute shuttle-bus ride. Other­wise, it’s a four-hour drive down from Kuala Lumpur.

 Whether this reported 4.5 billion ringgit (US$1.1 billion) investment by the financially stretched Malaysian govern­ment will be able to compete as hoped with the likes of Singapore’s Resorts World Sentosa or Bintan Island, in Indonesia, remains to be seen. At this point, however, it must be said that even its sustainability as an international resort looks somewhat doubtful.

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