Nine explosions were heard at Pulau Gaya off here, where fire hit Kampung Pondo.
It is learnt that explosions were caused by detonators believed used to make fish bombs.
The 1pm incident saw hundreds of villagers running for safety while many boats were seen leaving the water village.
Firefighters were immediately rushed to the scene to control the blaze from spreading to nearby villages.
City police chief Assistant Commissioner Jauteh Dikun was also on the island to monitor the situation.
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