The seven men, five women and five children, were aged between 20 and 44, while the children were aged between one and eight.
Further investigation revealed they had no valid documents and believed to have been trying to enter the country illegally.
State Marine Police Commander, ACP Mohamad Madun, said his men also confiscated two speedboats and a pump boat in the area.
When approaching the boats, he said the boats sped off but later ran aground at the beach off Nunuyan Island and the Mile 3 river here.
In the operation, he said, a 44-year-old skipper was arrested and two boats were seized for further investigations under the Human Trafficking In-Persons and Migrants Smuggling Act 2007 and Immigration Act 1959/63.
Mohamad also called on public to channel any information on smuggling activities to tel: 089-221423 or 221424 or 221453.