The Cromwell bowler lost to world No 2 singles player Brett Wilkie (Australia) 21-8.
Scott had been in impressive form in the first week of the championships and had won six of his seven section games. But he was out of his depth against the classy Queenslander, who took the initiative from the start and never allowed him into the game.
Scott still has a chance to redeem his fortunes as part of the triples team with Tony Grantham and Ali Forsyth that was unbeaten in section play.
They will go straight to the semifinals, where they will play the winner of the quarterfinal between Hong Kong and Fiji today.
The disappointment would be greater for defending singles champion Val Smith, who won the World Bowls title in Christchurch in 2008. She was beaten 21-15 by Australian teenager Kelsey Cottrell, ranked eighth in the world.
Smith also struggled in the pairs. It was only outstanding play by skip Jo Edwards that got New Zealand into the quarterfinals.
The setback in the singles was offset by the masterful display of the New Zealand men's four of Tony Grantham, Dan Delany, Ali Forsyth and Richard Girvan who beat Ian Ho, Joe Regan, Loren Dion and Michael Siddall (United States) 18-9 to get a semifinal game against Malaysia.
The New Zealand four had a comprehensive 21-8 win over Malaysia in the semifinal to book a berth in the final against Australia. The Aron Sherriff-skipped Australian contingent continued their unbeaten record with a comfortable 27-11 against Canada.
There will also be a transtasman battle in the final of the women's four. Australia's Natasha Van Eldik, Rebecca Quail, Lynsey Armitage and Kelsey Murphy will be pitted against Leanna Curry, Genevieve Baildon, Jan Khan and Edwards.
New Zealand had a comprehensive 30-4 semifinal win against Canada.
The men's singles final is between Brett Wilkie (Australia) and Safuan Said (Malaysia).
The women's singles final is between Kelsey Cottrell (Australia) and Sita Zalina Binti Ahmad (Malaysia).
