Terengganu Diving. Terengganu is a state located on the east coast of malaysia and off the coast of this state there are numerous islands which provide some of the best diving in malaysia. The taaras beach & spa resort show prices 1,816 reviews The underwater landscape of this part of the south china sea is absolutely brilliant. There is a good deep dives here dropping down to 30 meters with big shoals of snappers, fusiliers and rabbit fish.