A soldier and his two children died in an explosion Gurun, Kedah which damaged at least eight homes and two cars.

The soldier, who is in his thirties and only identified as Ayub, and his daughter, 8, and son, 5, died at the scene in Taman Ria Mesra in the 4.50pm incident.

The soldier's wife, known only as Sharifah Haslinda, 37, sustained severe injuries and was taken to Hospital Sultan Abdul Halim, Bernama reported.

The incident happened after police denied rumours that Malaysia is targetted by terrorists this festive season.

However, according to Inspector-General of Police Khalid Abu Bakar, initial investigations ruled out that the incident is terrorist-related.

"We are still investigating the circumstances of the case," he told Malaysiakini when contacted tonight.

Kedah Fire and Rescue Department director Ahmad Shahbuddin said initial inspection points to explosives.

Police bomb squad was called to the scene fearing more explosives, Ahmad told Bernama

"From our inspection, we found that the impact was very strong causing holes in the walls, thus convincing us that this is caused by explosives, and not from a cooking gas tank," he said.