Suggestions for extended budget stay in Malaysia

A friend of mine who has been to Thailand several time wants to try Malaysia for a change and as I have lived here many years has asked if I could provide some information for him.

He would like some pointers for "shack on the beach" type place preferably on the East coast. I realize the days of dirt cheap accommodation are gone but the cheaper the place the longer he will be able to stay.

I have no idea where he might start looking as my only real connection with Malaysia have been visa runs to Phenang, and have no idea about staying there for any length of time. So anyone have any ideas or suggestions for cheap on the beach places to give him a starting point that I can pass on will be most welcome.

AFAIR UK passport holders get a 3 month visa on entry, is this still the case? And could he do multiple visa runs across the border to stay for an extended period without problems.

There was a very informative post on here some time ago with information about foreigners living in Malaysia but I cant find it now.

Thanks