Chief Superintendent Simeon Dizon, Western Mindanao police director, said the rebels robbed the villagers of cash and valuables before herding them away and setting their houses on fire.
Dizon could not say if there were villagers hurt in the attack.
Meanwhile, a powerful blast ripped through two business establishments in Kabacan, North Cotabato on New Years Eve, the military said.
No one was reported injured in the explosion that hit ML Lhuiller and Echo Bakery along Aglipay street.
The explosive was made out of a 60-mm mortar shell with a timing device, the militarys Southern Command said. Roel Pareño