About 200 Pala'u people are staying in the coastal area and the authorities have not taken action against them for a long time.
Beluran MP, Datuk Seri Ronald Kiandee said the villagers voiced their concern on the situation during a dialogue on Friday.
He said the Pala'u colonies have been harvesting sea cucumber without any form of control.
"The villagers are worried the growing colonies of Pala'u will become a transit for distribution of foreign items apart from their fishery activities.
"They also informed that the colonies have started to get health services in the government clinic on the island," he said during his working visit to Pulau Jambongan here.
Kiandee called on the authorities to monitor and take appropriate action.
In fact, he said the issue has been brought to the attention of Beluran district action committee meeting and would be referred to the relevant authorities for further action.
"I share their worries and I agree that appropriate action should be taken to regulate and monitor the development of the colonies," he said.
In the event, Kiandee also officiated at a community hall of Kg.Hujung and launched a sports carnival for the Beluran parliamentary area under Jambongan Zone.
He also announced that a volleyball court would be built in the village.
Also present was Umno Beluran youth chief Samad Jambri.