The government does not dismiss the possibility of setting up a Royal Commission of Inquiry (RCI) or opening a White Paper to investigate claims that third parties were behind the terrorist intrusion in Lahad Datu, Sabah, said Home Minister Datuk Seri Hishammuddin Hussein.

He said a thorough investigation needed to be done to find out the real motive for the intrusion including if there were any parties which underwrote the terrorists from the southern Philippines to undermine the country's stability and sovereignty.

"This can be done either by an RCI or opening a White Paper.

"I myself want to know who are the masterminds and who are funding the terrorists and did the planning because all these concern national security," he said.

Hishammuddin said this at a press conference at the Sandakan police headquarters here today after receiving a briefing on the latest public order situation in Sandakan, the second largest town in Sabah, from Sandakan police chief ACP Rowell Marong.

Meanwhile, he said overall, the security situation in Sabah including in Tawau, Semporna and Sandakan had improved.

On the Eastern Sabah Security Command (ESSCOM), he said a group led by Chief Secretary to the Government Datuk Seri Dr Ali Hamsa would be in Sabah tomorrow to identify the additional requirements for its establishment.

He said enforcement in waters off Sabah's east coast would also be stepped up to prevent illegal entry including via rat trails by Philippine nationals.

Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi today announced that the ministry would take over responsibility for security along Sabah's east coast covering 1,400km, from the Prime Minister's Department.

On the arrest by a Philippines Navy patrol unit yesterday of 35 Filipinos suspected to have ties with the Sulu terrorists, Hishammuddin said Wisma Putra would be discussing with Manila on the matter.

The Philippine media reported that the suspects were intercepted in two boats which were carrying weapons and explosives, in waters off Tawi-Tawi at 6.30am yesterday.

Meanwhile, Hishammuddin also took time off to visit L/Corporal Mohd Zariman Ibrahim, Corporal Affendi Rusli and Corporal Khairul Anuar Md Isa who were injured in the "Ops Daulat" to rid Sabah of the terrorists and are receiving treatment at the Duchess of Kent Hospital here.

In KANGAR, Perlis' Komuniti 1Malaysia (K1M) also urged the government to set up an RCI to get to the bottom of the armed intrusion.

Its consultative chairman Datuk Nordin Abdullah said the organisation sympathised with the families of the men who were killed in fighting the terrorists.

Fifty-six Sulu terrorists have been killed so far since the Ops Daulat offensive was launched while the security forces lost 10 men, eight from the police and two from the military.