10 Of The Most Beautiful Malaysian Islands For A Vacation That Won't Break The Bank

Malaysia is a country split into two parts. Peninsular Malaysia is where you'll discover most of the country's best islands, while the provinces of Sabah and Sarawak on the internationally shared island of Borneo offer some of the best lesser-known attractions in all of Asia. 

The Malay word for island is "pulau." It's a word you will hear countless times if you come to this Southeast Asian country, especially if you have the intention of visiting the many stunning tropical islands on offer. The country's islands offers paradise to all budgets. You can easily stay in luxury overwater bungalows if you want one. But most also offer accommodation for under $50 per night. If your budget doesn't stretch that far, you can find excellent options for under $20, while hostels, campgrounds, and bamboo backpacker shacks exist for even less. 

It may not be as cheap as Vietnam, Cambodia, or even Thailand, but Malaysia still won't break the bank and it has something for every traveler type. Families to solo backpackers can choose from bustling hubs to secluded getaways and still return home with money to spare despite the white-sand beaches, crystal-clear waters, and abundance of marine life. Here are a few of the country's finest islands, where you can find some of the best Malaysia has to offer without paying out a small fortune.

Langkawi is the major hub in a jaw-dropping cluster of 99 islands in the Andaman Sea. It's separated from Western Malaysia by the Straits of Malacca. Besides warm seas and gorgeous beaches, you get ancient rainforest treks and unique encounters with wildlife. Gunung Raya, the island's highest peak, offers dense forests with scenic trails, lookout points, and a diverse range of animals, including leaf monkeys, flying squirrels, and hornbills.

You can enjoy incredible views of the archipelago from the Langkawi SkyCab cable car which traverses 2,300 feet above sea level over lush jungle, waterfalls, and ocean. It leads to a viewing platform from where you can catch glimpses of the distant coastlines of Thailand and Indonesia on a clear day. From the platform, you can walk the iconic Sky Bridge, the longest curved suspension bridge in the world. It hangs 330 feet over a green valley and provides you with incredible views of the surrounding area.

For budget travelers, these activities won't break the bank, and accommodation ranges from inexpensive motels and guesthouses, which can cost as little as $15, to luxury accommodations. What's more, Langkawi is a duty-free island where you can enjoy low-cost shopping and nightlife on top of an abundance of affordable dining options. You can find cheap street food bites for under a dollar, while you can even sit down to a slap-up meal for around $10 per person.

Penang is just a bit further south from Langkawi. It combines culture and affordability and is easily one of the best islands in all of Southeast Asia. It's the place to come if you're a foodie, and also quite the sight for architecture buffs. Budget travelers can spend days trying the different flavors found in the ubiquitous kiosks and stalls in Georgetown, the island's main hub. It's a big city, with a population of around 1.7 million, including the metro area. However, it has a laid-back vibe and the variety of delicacies on offer at rock-bottom prices will keep even the most budget-constrained traveler well-fed and wanting more.

It's also in Georgetown where you will see some of the region's finest architecture. Despite the country's past as a British colony, the buildings here do not all resemble those of that empire's particular taste. You'll discover everything from intricate Chinese shophouses and temples to beautiful domed mosques with a rich assortment of styles in between. The city was listed as a UNESCO World Heritage Site in 2008, and the best thing is that you don't need to pay a penny to photograph it.

August is one of the best times to visit for festivals, and you'll find bars in Georgetown selling affordable drinks. Other activities, such as a hike up Penang Hill for panoramic views, only cost you your energy. Budget accommodation options cost around $20, while if you wish to pay just a little extra, there are some excellent midrange choices that are still under $50 per night.

Further south from Penang, just off the west coast of Peninsular Malaysia is the little-known Pulau Pangkor. It's one of the country's best-kept secrets and is a quiet and mostly subdued island, so don't be expecting any wild parties. Additionally, the authorities have banned cars here, except for the eye-catching pink taxis that will get you from the jetty to your accommodation. Pulau Pangkor is also devoid of luxury resorts and upmarket tourism, meaning it's a penny-pinching paradise for budget travelers seeking tranquility.

Daily costs can be as low as $50 per person, especially if you're sharing a room. This includes your accommodation, food, activities, and transport. The budget area is Teluk Nipah. There, you can find hotels for less than $20, especially if you look at places further away from the beach. The northern part of this area is the most accessible for affordable family-run dining options. You can also seek out excellent street food at rock-bottom prices, and even sitting down to a seafood meal won't cost much more than $10 in many places.

Just a short walk or bicycle ride further north of Teluk Nipah, you'll find the long sandy stretch of Coral Beach. It's a lovely, secluded spot to catch the island's glorious sunsets, and if you want the place entirely to yourself, go in the early afternoon when it's quiet. In between Coral Beach and Teluk Nipah is Pantai Pasir Giam, another quiet, yet not completely deserted spot to catch the sunset. Here you have the opportunity to sip cocktails and devour a delicious yet inexpensive meal at Daddy's Cafe while the sun dips below the horizon.

It may be one of the more affordable islands in the country, but Pulau Perhentian Kecil doesn't compromise on beauty. This picture-perfect paradise is on the northeast side of Peninsular Malaysia and is known for its white-sand beaches and fair-priced snorkeling and diving. The latter even offers cost-saving opportunities to swim with turtles and reef sharks. 

It is very much a backpacker haven and has been a popular spot on the so-called Banana Pancake Trail for some time now. Being the smaller and more backpacker-accessible option of the two Perhentian islands, it is the livelier choice, with Long Beach the central hub for socializing and sleeping. There are no dedicated hostels, but many of the rustic guesthouses and homestays offer triple or quadruple rooms that allow for money-saving sharing with friends. Yet, Pulau Perhentian Kecil isn't all about mingling with other travelers. Some beaches offer seclusion and are a good choice for budget travelers looking for a Robinson Crusoe-type experience. To find these places, you usually need to go beyond Booking and Agoda. In fact, getting the best deals often involves just showing up and finding a room.

Perhentian Kecil has diverse food options, too, that are quite affordable at anywhere between $2 to $12 for a decent meal. This depends on the restaurant standard or if you opt for street food. The seafood is fresh, delicious, and cheap, while alcohol is more widely available and cheaper than on Perhentian Besar. However, it is still more expensive than the mainland and you might want to BYO if you can slip a bottle or two in your backpack before arriving.

While Kecil delivers livelier nightlife and more affordable accommodation, the neighboring Pulau Perhentian Besar delivers more tranquility. You can get this calmness at affordable rates, too, though if you want to splurge, Kecil is the likelier of the two. It has the only high-end resorts (including the Marriott) despite its tag as being the backpacker island.

However, Perhentian Besar offers the same sugary white-sand beaches and turquoise-blue waters teeming with just as much marine life as its slightly smaller sibling. Yet it does so with a touch more serenity. If you are a couple looking for an idyllic getaway, a family seeking peace and quiet, or just a solo traveler who prefers a book over a beer, this island is the one for you. But, if you find Besar's pace of life too slow, you can easily hop on a taxi boat and make the short trip across the water.

Food options here offer the same sumptuous seafood as on Kecil at slightly higher prices. Yet, these costs are still in the budget bracket, and places like Nia Cafe can serve up delicious breakfasts, lunches, and dinners at prices you don't mind paying.

If you're not really one for rustic backpacker accommodation and want to arrange a resort-style holiday at an affordable rate, Pulau Redang may be the one for you. It's just south of the Perhentian Islands and the primary reason for going there is to enjoy its marine paradise. You can get resort accommodation for less than $50 per room per night with a bit of research. All-inclusive tour packages are available, too, should you prefer extra savings. However, if you wish for more flexibility, room-only packages are the best option.

There aren't many backpacker shacks available, though camping is an option at the Redang Campstay, which also offers rustic bamboo chalets. Traditional hostels are unavailable, so if you're on an ultra-low budget, consider Pulau Redang as a bit of a splurge. Big savings are available for visitors who don't mind coming in the off-season, and the shoulder season sees more excellent discounts. However, it's always advisable to book your accommodation in advance, no matter the time of year.

The island's surrounding waters are home to more than 3,000 species of fish and an abundance of chromatic coral and other sea life. You can find the most vibrant snorkeling around the islets of Pulau Pinang and Pulau Ekor Tibu, and scuba divers can also arrange trips off the eastern shore. Popular beaches include Teluk Dalam and Long Beach, where you can enjoy psychedelic sunrises. Nightlife is fairly low-key and limited to live bands in hotel restaurants, while the busy weekends mean karaoke on the beach until midnight.

Pulau Kapas is a low-key island with inexpensive beachfront stays, a laid-back vibe, and easy access to snorkeling right from the shore. It's located off the east coast of Peninsular Malaysia, further south of Redang, near the city of Kuala Terengganu. It's another hidden gem and hardly spoken of by travelers. This may be down to the lack of nightlife and even electricity, which is limited during the day. So, if you're looking for an affordable paradisiacal spot where you can do little more than read or step out into the ocean for fantastic snorkeling, consider Pulau Kapas.

On top of its sugary white-sand beaches and turquoise blue waters, this island has possibly the most laid-back vibe in all of Malaysia. However, it only receives visitors from February until October, with numbers peaking around June and July. Public holidays may see a rise in numbers, and also prices, as locals make their way to the island to enjoy some downtime, so avoid these dates if you want serenity.

Dormitories and cheap fan rooms with shared bathrooms are available, but you can access ensuite air-con rooms for under $30. Like other islands in the country, you might not find opportunities to book ahead on Agoda and other sites. However, Pulau Kapas is tiny and you can easily look around and discover the best places on foot. Additionally, if you want to savor a rum and coke in the evenings while enjoying the glorious sunsets, bring your own alcohol. Nowhere has a license to sell it, and there are also no ATMs. Stock up on cash and bring essentials like sun cream with you as they tend to be pricey here.

Pulau Tioman is an attractive island with pristine white-sand beaches and a dramatic boulder-strewn coastline encircling a rugged, lush interior. It's located on the southeast side of Peninsular Malaysia, south of Pulau Kapas. The crystal-clear waters here are protected as part of the Tioman Marine Park and are home to an abundance of ocean life and coral reefs. You can dive and snorkel with graceful turtles, rays, and even the occasional whale shark at reasonable rates.

Back in the 1970s, TIME magazine named Pulau Tioman as one of the world's most beautiful islands, which you might expect to result in a clamor to build 5-star resorts and other luxury spectacles. However, little has changed, and it remains an affordable getaway for budget travelers. Furthermore, you'll be happy to hear that it's one of Malaysia's duty-free islands. The travelers who come here and say that the beer is cheaper than water are really not talking tongue-in-cheek. At 50 cents per can, the beer is cheaper than water. In addition, while Tioman may not be a famous culinary destination, you can get basic meals for just a couple of dollars if you don't mind the more rustic-looking eateries.

The main areas for budget-priced accommodation are the backpacker beaches at Air Batang (known as ABC) and Salang. You'll find basic beach-view bungalows as low as $10 per night. These options are usually walk-in rates, but you can still find excellent value under $50 on booking sites if you prefer to plan ahead. It's on these beaches where you can also enjoy an abundance of bars to socialize on a shoestring and meet other travelers to get more money-saving tips on idyllic destinations.

Moving away from Peninsular Malaysia, Pulau Labuan is located just off the northeastern coast of Borneo in close proximity to the sultanate of Brunei. It's often referred to as the "Pearl of Borneo" and is another duty-free island. That means cheap shopping and socializing, and you can certainly find affordable accommodation, too. Most of the budget hotels are in Victoria, the island's capital. If your primary goal is shopping for bargains, it might be best to spend at least a couple of nights there.

However, Labuan also offers historical sites and natural beauty. You can hike the Bukit Kubong Walking Trail from the beach at Pantai Pohon Batu for sweeping panoramic views. Then there's the spectacular sunsets from Pancur Hitam, one of the island's more developed beach areas and home to many inexpensive eateries. It's here that you'll also see a beautifully landscaped park stretching alongside the sandy shore, while local markets offer fresh coconuts and traditional snacks. This is the ideal area to base yourself if you plan on exploring the Pulau Labuan attractions.

History buffs will appreciate the Labuan War Cemetery, the resting place for almost 4,000 Allied soldiers. You can pair your appreciation with a visit to the deep. There are four excellent wreck dives here, including the USS Salute, a navy mine sweeper that tragically split in half and sank on June 8, 1945, after hitting a mine. However, scuba divers should note that while the climate on Labuan is largely unaffected by the monsoon, the sea does get choppy during the wet season. March to October gives you ideal weather for outdoor fun, whether you are there to explore the wrecks or just to relax on the island's peaceful white-sand beaches.

While you can't stay on the stunning yet tiny island of Sipadan, you can arrange day trips from the mainland. It's situated in the Celebes Sea off the coast of Sabah in Borneo and is rated as one of the world's best diving destinations for underwater beauty. Divers come here mainly for the crystal-clear visibility and the opportunity to see turtles and reef sharks from all angles. There are also huge schools of jackfish, barracuda, bumphead parrotfish, and, if you're lucky, the occasional hammerhead or whale shark.

However, while this article is about budget travel, diving in Sipadan isn't particularly aimed toward budget PADI holders. But that doesn't mean you can't get good value. If you make the right decisions and you're not fussy about accommodation, you can get world-class scuba diving at surprisingly decent rates. One of the main reasons diving here can be pricey is the fact that visitors are limited. The authorities issue 176 permits daily to tourists, which are shared among 24 dive operators. The permit itself costs approximately $95 per day and divers need to be at least Advanced Open Water-certified. Your permit allows for two dives and you must make bookings through your resort.

You can save money by staying at and diving with one of the affordable options in the town of Semporna on the mainland. Mabul Backpackers, Scuba Junkie, and Uncle Chang's all offer packages that should cost around $450 for a 3-day/2-night stay, including a full day of diving. You can also save more money by avoiding the high season. January to March is the cheapest time of year. However, the trade-off is lower visibility and the possibility of rain. That said, you'll have a shorter wait time to get your permit.