If you follow the road from the main sidewalk path, past One Tanjung, you will get to a cul de sac. As you are walking around the cul de sac, on the left side you will see that someone is building a garden. This garden has a beautiful view of the ocean. As you continue around the cul de sac, hidden in the back right corner is a nice set of stone stairs that leads down to the ocean. From the stairs you can see some of the boats that are stored at the Penang Swim Club next door.
This geocache is hidden well, so you will need to search for it. Please re-hide well after you find it.