At least seven people were killed when a passenger boat caught fire off the coast of the Philippines today.

The MV MERCRAFT 2 ferry carrying 134 people had departed for Real town in Quezon province from Polillo Island at 5:00 am local time on May 23 when a fire erupted from the ship's engine room, the Philippine Coast Guard (PCG) said. The boat captain ordered everyone onboard to abandon ship past 6:00 am as the flames spread to the ship's upper deck.

Rescue personnel on motorboats were dispatched to save the stranded passengers and crew members of the ferry who had jumped into the sea some 1,000 yards from the Port of Real.

Footage shows the tense rescue operations as responders rushed to pull the victims floating in the water several metres from the burning vessel.

The fire was reportedly extinguished at 9:33 am.

The PCG said in an update that all passengers had been accounted for by 11:30 am. They rescued 103 uninjured people while 24 more suffered wounds of varying degrees. They have been taken to the hospital for treatment.

Seven passengers - two men and five women - had reportedly died in the blaze.

PCG spokesperson Commodore Armand Balilo said: 'From what I know, [this boat] has a record of sinking, but these Mercraft vessels are new.'

The MV MERCRAFT 2 has been towed to the shore of Real municipality, the PCG said.