Hundreds of people have been displaced after a fire destroyed around 200 homes in a coastal village in Malaysia's Sabah state on Sunday, state news agency Bernama reported.

Authorities were notified of the fire in Sandakan district at around 1:32 am (1732 GMT), the district's fire and rescue chief Jimmy Lagung was quoted as saying by Bernama.

“Strong winds and the close proximity of the houses caused the fire to spread rapidly, while low tide conditions also made it difficult to obtain an open water source,” Lagung said, according to Bernama.

The fire broke out in one of Sabah's water villages, which feature wooden houses built on stilts and are home to some of the country's poorest communities, including many stateless and indigenous groups.

Around 445 people have been displaced so far, Bernama said, citing unofficial figures of people registered at a temporary relief centre in Sandakan.

Malaysia's Prime Minister Anwar Ibrahim said the federal government was coordinating with Sabah authorities to provide basic assistance and temporary relocation for those affected.

"The priority now is the safety of the victims and immediate assistance on the ground," he said in a Facebook post.