MANILA - FIVE people were killed and at least two others were missing after a landslide demolished part of a shanty town in the southern Philippines, officials said on Friday.

The bodies of the five were recovered after they were buried in a landslide near the mountain town of Monkayo, said town councillor Glenda Veralino. An earlier report said the landslide occurred near Sitio Dipo.

Three of the dead were believed to be children, according to civil defence official Antonio Clomo.

The landslide occurred late on Thursday after heavy rain loosened soil above a group of shacks.

'There are many rescuers from all over the province. The army, the police are here. We have three bulldozers and a payloader,' aiding in the search, said Ms Veralino.

Relatives have confirmed two people are still missing after the landslide, she said.

'There is talk going around that there were a lot of people in the area who may have also been buried by the landslide but so far, we only have two who cannot be accounted for,' Ms Veralino said.

The area, which is located about 200 kilometres east of Davao City, is littered with shanty towns where most of the residents manage to scrape together a living from dangerous, unregulated, small-scale mining.

'The government has declared much of the area a geo-hazard and not suitable for housing,' Mr Clomo said.

'The government has told residents that they should leave the area for safer ground during heavy downpours but the warnings are usually ignored.' -- AFP