At least two people were reported killed and 22 others were missing on Wednesday after a Philippine ferry sank in choppy seas, the coast guard said.

The wooden-hulled MV Josille 2 was carrying 34 passengers and 12 crew members when it was reported before dawn to have sunk off the northern coast of Palawan island, the coast guard said.

"Two are confirmed dead, while 22 have been rescued and the rest are missing," a coast guard official monitoring the incident told AFP.

"The vessel encountered heavy waves."

Ferries are one of the main modes of transport in the Philippine archipelago of more than 7,100 islands, and sea accidents are common due to poor safety standards and overloading.