LABUAN, January 1- A total of 42 houses inhabited by approximately 261 residents in Kampung Muslim refugee settlement , Jalan Batu Arang, were destroyed in a fire that occurred this morning.

In the incident, two victims were reported injured.

One suffered minor injuries to his leg and shoulder, while the other suffered burns on the back of his body and was sent to Labuan Hospital for further treatment.

Director of the Labuan Fire and Rescue Department (JBPM), Abd. Rahman Ali, said the fire brigade received a call at 10.47am and arrived at the scene at 10.52am.

"The fire that happened only 2.5 kilometers from the nearest fire station was successfully controlled at 11.39 am.

"The fire-fighting operation involved 33 firemen and seven fire engines from the Labuan Sentral Fire Station (BBP), Layangan BBP, and Rancha-Rancha BBP," he said when met at the scene.

Abd. Rahman also informed that the cause of the fire is still under investigation. Several other agencies were also involved in the operation, including the National Security Council (MKN), the Royal Malaysian Police (PDRM), SESB, and the Water Supply Division.