A major fire has swept through a coastal settlement in Sandakan, destroying about 1,000 homes and displacing more than 9,000 people.

The blaze began early Sunday and moved quickly through rows of wooden houses built on stilts above the sea.

Fire crews said strong winds and tightly packed structures helped the flames spread, while narrow access routes and low tide slowed their response.

No deaths have been reported, but thousands have moved to temporary shelters. Water villages line much of the Sabah coast and often lack basic infrastructure.

Many residents come from low-income or marginalised groups. Anwar Ibrahim said federal and state agencies are coordinating relief. The cause remains under investigation.