BBC ONLINE 6 March 2013
Last updated at 06:03 GMT
Residents have left their homes in some places amid fears of further clashes
On Tuesday, Malaysia launched an attack on the group using both ground troops and fighter jets.
But a spokesman for the 200-strong Filipino group, who lay claim to the area, said they escaped the attack.
The conflict has already left at least 27 people dead, and put pressure on both governments to resolve the crisis.
The Filipinos landed at a coastal village in Sabah's Lahad Datu district last month, saying that the territory was theirs.
Calling themselves the Royal Army of Sulu, the clan members said they were descendants of the Sultanate of Sulu in the southern Philippines, which ruled parts of northern Borneo for centuries, and demanded that the Malaysian government pay more money to lease their land.
Since then violence has erupted on two occasions and in two locations, leaving eight members of the Malaysian security forces and 19 clan members dead.
Malaysian officials confirmed late on Tuesday that they had not found any of the clan members during Tuesday's operation.
"Follow-up action and house-to-house searches" were taking place on Wednesday, state news agency Bernama said.
Gunfire was exchanged in a hilly area early on Wednesday,
Malaysian officials said, with one clan member believed to have been
shot. It is not clear whether the clan member was killed.
"The mopping and searching will cover a wider area given there are signs the intruders moved to another location," Malaysian National Police Chief Ismail Omar told reporters.
"The security forces are tracking down their movements and will take the appropriate action."
Bernama also quoted him as saying that the Filipinos were now "impersonating as members of the public" to evade Malaysian troops.
For their part, the Philippines' Foreign Ministry said in a statement on Wednesday that "we do not have information on the number of casualties from the latest assault".
In the statement, the ministry said that the foreign minister "continued seeking the exercise of maximum tolerance to avert further loss of lives".
Philippine Foreign Affairs Secretary Albert del Rosario returned to Manila late on Tuesday after holding two days of talks with his counterpart in Kuala Lumpur.
"We did everything, we walked the last mile. We intend to fully continue this effort," local media quoted him as saying.
The Manila-based leader of the Filipino clan, Jamalul Kiram III, said in a statement on Tuesday that they were prepared to "fight to the last man" and would not surrender.
The stand-off poses a challenge to both governments. Malaysian Prime Minister Najib Razak has come under increasing domestic pressure to end the incursion, while the Philippine government is facing calls to do more to protect the Filipino group.
Sabah formed part of the Sulu Sultanate - which once spread over several southern Philippine islands as well as parts of Borneo - before it was designated a British protectorate in the 1800s.
Sabah became part of Malaysia in 1963, and the country still pays a token rent to the Sulu Sultanate each year.
Malaysia troops hunt Filipino clan in Sabah stand-off
Residents have left their homes in some places amid fears of further clashes
Malaysian
troops are searching houses and terrain for armed members of a Filipino
clan embroiled in a three-week conflict in Sabah on Borneo island.
But a spokesman for the 200-strong Filipino group, who lay claim to the area, said they escaped the attack.
The conflict has already left at least 27 people dead, and put pressure on both governments to resolve the crisis.
The Filipinos landed at a coastal village in Sabah's Lahad Datu district last month, saying that the territory was theirs.
Calling themselves the Royal Army of Sulu, the clan members said they were descendants of the Sultanate of Sulu in the southern Philippines, which ruled parts of northern Borneo for centuries, and demanded that the Malaysian government pay more money to lease their land.
Since then violence has erupted on two occasions and in two locations, leaving eight members of the Malaysian security forces and 19 clan members dead.
Malaysian officials confirmed late on Tuesday that they had not found any of the clan members during Tuesday's operation.
"Follow-up action and house-to-house searches" were taking place on Wednesday, state news agency Bernama said.
"The mopping and searching will cover a wider area given there are signs the intruders moved to another location," Malaysian National Police Chief Ismail Omar told reporters.
"The security forces are tracking down their movements and will take the appropriate action."
Bernama also quoted him as saying that the Filipinos were now "impersonating as members of the public" to evade Malaysian troops.
For their part, the Philippines' Foreign Ministry said in a statement on Wednesday that "we do not have information on the number of casualties from the latest assault".
In the statement, the ministry said that the foreign minister "continued seeking the exercise of maximum tolerance to avert further loss of lives".
Philippine Foreign Affairs Secretary Albert del Rosario returned to Manila late on Tuesday after holding two days of talks with his counterpart in Kuala Lumpur.
Malaysia's trade minister says violence will not hit investment
"We did everything, we walked the last mile. We intend to fully continue this effort," local media quoted him as saying.
The Manila-based leader of the Filipino clan, Jamalul Kiram III, said in a statement on Tuesday that they were prepared to "fight to the last man" and would not surrender.
The stand-off poses a challenge to both governments. Malaysian Prime Minister Najib Razak has come under increasing domestic pressure to end the incursion, while the Philippine government is facing calls to do more to protect the Filipino group.
Sabah formed part of the Sulu Sultanate - which once spread over several southern Philippine islands as well as parts of Borneo - before it was designated a British protectorate in the 1800s.
Sabah became part of Malaysia in 1963, and the country still pays a token rent to the Sulu Sultanate each year.
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International Business Times UK Malaysian Army Re-takes Borneo Village from Filipino Fighters 19 hrs ago
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International Business Times Australia 'Pandemonium' in Malaysia After Government Troops Re-take Borneo Village from Filipino Fighters 20 hrs ago
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