Five people were killed and three others were injured when a fireworks factory exploded in the Philippines.

Multiple explosions ripped through the building operated by Diamond Fireworks Inc. in Cabuyao City, Laguna province, sparking panic among residents on February 1 afternoon.

CCTV footage captured the moments shortly before the deadly blast.

The dramatic clip shows a boy, 12, walking near the factory while carrying two water jugs. He glanced at the factory, then dropped the jugs and broke out into a sprint as powerful explosions tore through the area just seconds later.

Police said five people were killed while three were critically injured. Four of the fatalities were workers at the facility, while the fifth was a boy, 5, caught in the blast.

The three wounded were recovering at different hospitals in Laguna province.

Eleven other houses near the factory were damaged.

Police said they were investigating reports that workers were seen smoking near the fireworks facility.

Cabuyao City Mayor Dennis Hain said the factory did not have the proper permits to manufacture fireworks.

He told local media: 'They were also manufacturing fireworks, and some of their workers were even living in the factory.

'That is not allowed. They don't have the proper permit to make fireworks. What they have is a seller or retailer's permit, but they probably wanted more profits so they were also producing fireworks.'

Meanwhile, angry locals said it was not the first time the factory had exploded. They said they had called for it to be closed after it was razed by a fire in 2016, but claimed their complaints went unheard.

Cabuyao City Information Officer Aris Mane said authorities were now 'looking at all angles' to find the cause of the explosion. He added the local government will be shouldering the medical and funeral expenses of the victims.