The landslide added to concerns in Penang about the pace of development, particularly near the island's hills, which critics say is damaging the environment and increasing the risk of such accidents.
Rescuers searching for construction workers buried alive by a landslide in Tanjung Bungah, Penang were forced to suspend their efforts due to nightfall.
He said the victims included a Malaysian, who is the supervisor.
The incident was reported to have involved 14 victims comprising one local, as well as several Indonesian, Rohingya and Bangladeshi workers.
Bangladeshi worker Mohammad Jashim Hussein Ahmad said the landslide had caught workers unawares burying his friends who didn't get any time to escape.
Penang Island City Council mayor Datuk Maimunah Mohd Sharif has confirmed the discovery of two bodies.
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Reports say rescue operations are now underway with the Penang fire and rescue department revealing in a statement that two people so far have been pulled from the landslide, which occurred at a building construction site.
Tanjung Bungah, north of Penang's capital George Town, is home to beaches and some hotels, and is popular with expatriate residents.
A foreign worker, who witnessed the incident, said that the landslide occured without warning.
The search and rescue (SAR) operation for 10 other victims is in progress.
The police raided a warehouse at Klang, a town of Selangor state, and conducted a check on 150 foreigners working at the warehouse that belonged to a major supermarket chain of the country.