The accident occurred near the holiday island of Langkawi in northwestern Malaysia, close to the border with Thailand.
A search and rescue operation is underway and so far ten people have been rescued, including Bangladeshi citizens and Rohingya from Myanmar.
In addition to the sunken boat, two other boats are missing with approximately the same number of passengers on board, according to Malaysian police.
Malaysia is home to millions of migrants from poorer parts of Asia, many of them unregistered, who work in sectors such as agriculture and the construction industry.
The boat crossings are dangerous and several deaths have previously occurred in connection with migrant boats capsizing.
