LDA Holdings CEO Noor Halim Zaini, whose company manages the Labuan ferry terminal, said the incident occurred midway through the journey when smoke and flames were spotted in a section of the vessel.

“The boat operator immediately steered the vessel towards the nearest shoreline to ensure a safe evacuation,” he told Bernama.

“Despite the fire spreading quickly, all passengers were safely brought to shore without injury. However, their personal belongings were completely destroyed in the blaze.”

Witnesses said passengers appeared shaken but relieved.

The Menumbok-Labuan route is one of the busiest maritime passenger corridors in the region, with hundreds of commuters relying on the service daily for work, school, and essential travel.

Noor Halim said further details on the cause of the fire and the extent of the damage to the vessel are being investigated.

Emergency responders and local authorities arrived shortly after to secure the area and begin preliminary investigations.