Eight dead as asylum seeker boat sinks

At least eight asylum seekers have drowned and more are missing after their boat capsized off southern Malaysia while en route to Australia.

It's believed the occupants were intending to make landfall in Indonesia before heading to Australia

The sinking comes just two months after more than 200 asylum seekers drowned when their vessel sank after leaving for Australia from East Java in Indonesia.

Malaysian authorities have confirmed that eight bodies were found on a beach in southern Johor state early on Wednesday.

Grave fears are held for about six others who are missing.

Another 13 people managed to make it to shore.

The boat was carrying about 25 asylum seekers believed to be from Afghanistan and Iraq.

Police spokesman Che Mahazan Che Aik said none of the men had travel documents and they had told authorities they were asylum seekers from Afghanistan and Iraq.

Also on Wednesday, a group of 54 ethnic Rohingya from Burma was discovered adrift in waters off North Aceh in Indonesia.

It's possible the group, which was believed to be heading to Australia when the boat's engine broke down, may have transited through Malaysia.

On Thursday, Immigration Minister Chris Bowen confirmed the sinking of the boat off southern Malaysia.

"This underlines the government's reasons for seeking regional arrangements to break the people smugglers' business model, take away what they're trying to sell, and deter desperate asylum seekers from taking that dangerous boat journey," he said in a statement.

"It is why the government worked so hard to develop its cooperative arrangement with Malaysia."