Kapalai Water Village Resort is located in the ocean off the North East tip of Borneo, East Malaysia section. Its beautiful and the cost is reasonable. Cost about US$1000 for 5 nights - or about Aussie $1700 - Sing $1700 - depending on the exchange rate... That will cover accommodation, food, all transport (except air)...
The chalets are roomy, well built, have great views with modern toilets with a bath - and the sewage is treated. Each chalet can fit a couple; 4 people would be a squeeze. They also have ocean view balconies - 180 degree magnificent views of the ocean. And yes, there is a bar fridge. No mosquitoes due to its unique position. The resort is built on top of a sunken atoll in the middle of the Ocean. There is a security barracks in the resort run by the Malaysian Army.
The food is catered and served buffet style. You get fresh made waffles and pancakes for breakfast. Umm... the usual buffet stuff for lunch and dinner.... But strangely the fish is not fresh. I know that in Mabul - the other resort in Sipadan - you can order fresh fish - Coral trout etc.. - which taste absolutely heavenly.
I'd like to live here for a month or two; with a pleasant female friend. I should have done so at the end of 2007, it would have saved me a whole lot of bother. But in hindsight, things always seem so simple.
To get here you fly into Tawa then the resort bus will take you to Semporna, the port on the North East tip of Borneo - In the morning, the resort jetty takes you to the ocean resort. There used to be a direct flight to Tawa from Johor - but now it seems you have to fly to KK and take a connecting flight.
If any of my dive friends plan a trip there- I'll be there in two shakes of a lamb's tail. :)