A fire engine manned by seven personnel from the Lintas Fire and Rescue Department was the first to arrive at the scene following a distress call at 10.47am.
They were subsequently assisted by three fire engines manned by 18 personnel from the Kota Kinabalu Fire and Rescue Department which arrived moments later.
Rescue teams stopped the fire from spreading to a mosque nearby and brought the fire under control at about 11.33am.
The whole operation ended at about 1.33pm
Among residents met at the scene was Rosland Mohd Lalin who is the Personal Secretary to the Minister of Community Development and Consumer Affairs.
"I immediately rushed home after receiving a call from my family and saw thick smoke coming from my neighbour's house which is just a stone's throw away from my house," he recalled.
"I thank the villagers and rescue team for their prompt action which stopped the fire from spreading," he said, adding that he will bring this matter up with his Minister Datuk Jainab Ahmad, who is also Karambunai Assemblywoman.
"From there we will see what assistance can be given to the fire victims and what safety measures can be taken to prevent such incident from recurring," he said.
It was learnt that pupils at a school nearby were asked to return home as fire fighters worked hard at stopping the fire from spreading to other premises.