One&Only Desaru exit casts shadow as Johor SEZ ambitions grow
[KUALA LUMPUR] The ultra-luxury tropical resort One&Only Desaru Coast – hailed as Johor's crown jewel in global tourism when it was unveiled five years ago – has quietly vanished from Malaysia's tourism map, dropping its branding without fanfare.
The official One&Only website now states that the Desaru Coast resort is no longer under its management – a low-key move made without any announcement beyond the site update. The property is owned by a unit of Khazanah Nasional, Malaysia's sovereign wealth fund.
A favourite among well-heeled Singaporeans for its lush rainforest setting and easy weekend access, the resort featured suites with private plunge pools, a 50-metre infinity pool, and a destination beach club by Andrew Walsh, the chef behind Singapore's one-Michelin-starred Cure.
One&Only's retreat could draw attention in hospitality circles, coming just as Johor steps up its ambitions through the Johor-Singapore Special Economic Zone (SEZ).
Desaru Coast is owned by Desaru Peace Holdings, a subsidiary of Themed Attractions Resorts & Hotels (TARH), which is wholly owned by Khazanah Nasional.
Khazanah did not respond to BT queries. Kerzner International, the brand owner of One&Only, confirmed that its management contract with the resort ended on Apr 30.
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The One&Only website states that the Desaru Coast resort is no longer under its management. PHOTO: ONE&ONLY DESARU COAST
Rebranding afoot
As at mid-May 2025, Google lists One&Only Desaru Coast as 'Permanently closed.'
'A mutual agreement was reached to bring to a natural end One&Only Resorts' management contract with One&Only Desaru Coast, between Desaru Peace Holdings, the resort's owner, and One&Only Resorts, the management operator,' said Alice Issigonis, global director of communications and public relations at Kerzner International in response to BT queries.
'This change in management did not involve a closure of the resort, which remains open. Both Desaru Peace Holdings and One&Only Resorts are very proud of the resort's achievements. One&Only ceased operations on Apr 30,l 2025. Desaru Peace Holdings will announce a new operator once confirmed,' she added.
Kerzner International manages some of the world's most exclusive ultra-luxury resorts under the label, with properties in Greece, Montenegro, Mexico, Mauritius, the Maldives, South Africa and Dubai.
Tourism ambitions tested
The luxury retreat's exit, however, comes just as Malaysia's federal government doubles down on tourism under the 'Malaysia Madani' framework, which aims to put good governance, sustainable development and racial harmony at the heart of government policies.
When launching the Visit Malaysia 2026 campaign, Malaysian Prime Minister Anwar Ibrahim set bold targets: 35.6 million tourist arrivals and RM147.1 billion (S$43.3 billion) in receipts.
'Tourism must not only drive national revenue,' he reportedly said earlier this year, adding that it should 'create sustainable livelihoods across every state – including Johor, which sits at the gateway to Singapore'.
Launched in January, the Johor-Singapore SEZ is part of this broader economic push. The government-to-government initiative aims to facilitate trade, enhance mobility, and draw high-value investment and is being closely watched as a potential game changer for Johor's economic trajectory.
Industry players are confident the high-end resort's departure is a one-off event.
Ivan Teo, chairman of the Johor chapter of the Malaysian Association of Hotels, said One&Only's exit reflects a change in operator, not a deeper market issue.
'The rest of the services and facilities remain the same. Its exit will not impact long-term investors. A new operator will be announced by the end of this month,' he said.
He reaffirmed confidence in Desaru's readiness to support luxury tourism. He pointed to growing connectivity, including direct ferry links from Singapore, and soon, Indonesia, as well as new hotel entrants such as Sheraton and Novotel in Johor Bahru. 'Desaru is definitely ready,' he stressed.
SEZ – Johor's big reset
He noted that Johor's strong demand for high-end experiences is evident from the popularity of Johor Premium Outlets, and that premium hotel brands would not struggle to thrive, given the current shortage of rooms.
'Johor Bahru has always been seen as a leisure zone. The SEZ could boost weekday occupancy, which is currently inconsistent,' he said, adding that corporate traffic from investors and business travellers will directly benefit the hospitality sector.
'With China's visa exemption, ferry and flight connectivity from Indonesia, and the upcoming Rapid Transit System in 2026, we can already foresee tangible spillover into Johor,' he added.
However, he noted that infrastructure gaps remain, adding: 'Public transportation, pedestrian-friendly roads and paved walkways would make a big difference – especially for tourists who don't drive.'
Yet, as Anwar's administration doubles down on its cross-border ambitions, observers are questioning whether Johor can avoid repeating past missteps such as the scrapped Kuala Lumpur-Singapore High-Speed Rail and the mixed results of Iskandar Malaysia, the development corridor in southern Johor.
Mohamad Isamuddin Isa, a Johor Bahru city council member and co-founder of Strategic Communications Solutions, described the SEZ as being more structured and committed than past initiatives. 'It's like a sandbox pilot. The whole southern region is involved now, not just select areas,' he said.
Execution is everything
Isamuddin cited efforts such as the Johor Talent Development Council, which links local youth to sectors such as data centres and advanced manufacturing, as part of the state's drive to localise SEZ benefits.
Dr Carmelo Ferlito, an economist and chief executive officer of research consultancy Center for Market Education, offered a broader perspective, saying: 'Special Economic Zones present both opportunity and risk.
'They can incentivise investment, which is vital for long-term development – but incentives must be broad-based, not overly targeted, or the model collapses once they are withdrawn.'
He urged Malaysia to look beyond isolated zones. 'The government shouldn't decide where development happens – the market should lead that discovery process,' he said.
He also supported easing movement between borders. 'True free trade is enhanced by mobility of people and goods,' he added.
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