A spokesman for Malaysia's Maritime Agency said they had sent one boat to the area to search for survivors and was sending two more.
Malaysia's New Straits Times said the boat sank around midnight on Tuesday about two miles (3 km) from the coastal town of Banting on the Strait of Malacca.
More top news
Great British Bake Off star Sue Perkins reveals she's been living with a brain tumour for eight years.
After a day where thousands of migrants tried to make their way to Germany, tonight they are sleeping on Budapest's streets.
After a bit of a nippy feel over night and an Autumnal feel into the morning.