The objective of this survey is to investigate the species diversity and the distribution of unexploited demersal resources at a depth between 150-500 m using beam trawl. The survey covered 16 stations between latitude 04.30° longitude 109.30° (off Sarawak) to latitude 08.00°N longitude 117.00° (off east-coast Sabah). 160 species of fish and invertebrates under 79 families were identified. The dominant species caught were deep sea pink shrimp, (Pandalus sp)., sea cucumber, (Holothuroidea), gastropods, benthic fishes: Polymixia sp. (beardfish), Malakichthys elegans, Setarches guentheri (deepwater scorpion fish), Chloropthalmus sp. (greeneye), Cubiceps cf. whiteleggii (flathead), Bembrops caudimacula (duckbill), nephrops: (Metanephrops formosanus, M andamanicus and M chinensis and others). At a towing speed of 3 NM/hr, the average catch rate was 16.06 kg/hr ,, where fish contributed 9.46 kg/hr (59%) and invertebrate 6.60 kg/hr (41%). The average density was 724 kg/km2(fish 436 kg/km2 and invertebrate-288 kg/km2) at catchability coefficient, q=1.0. The water off Sabah was more productive (density 964 kg/km') than off Sarawak (486 kg/km2). The estimated area within the depth range 150-500 m for Sarawak (24,695 km2) was almost 5 times larger than the area off Sabah east coast (5,488 km2) but the biomass distribution was only in a ratio of 3:2.