Located off the coast of northeastern Malaysia not far from the Thai border. The Perhentian Islands are the must-go place in Malaysia for budget travelers. They have some of the world’s most beautiful beaches and great diving with plenty of cheap accommodation. The two main islands are Perhentian Besar (“Big Perhentian”) and Perhentian Kecil (“Small Perhentian”). Both the islands have palm-fringed white sandy beaches and turquoise blue sea.