A Coast Guard vessel found the Kwok Tai Hai anchored off the coast of Balabac Island last Saturday and gave chase when the foreign vessel set off.
The vessel was intercepted and boarded as it headed toward Malaysian waters, said Lt. Alucibetho Piodo, the local Coast Guard commander.
Protected reef fish as well as a shark, compressors and fishing gear were found aboard the Chinese vessel, Piodo said.
"It appeared the fish were caught using dynamite," he said.
The 24 crewmembers, including one woman, would be turned over to the immigration bureau, which would decide whether they would be deported, fined or jailed, Piodo said.
The Coast Guard has struggled to protect its maritime borders from large-scale foreign fishing fleets.
In March, the Philippines deported 17 Chinese poachers after holding them for a year in jail in Palawan.
President Arroyo granted them conditional pardon, avoiding an official diplomatic protest from China, an important trading partner.
Saturdays arrest of the 24 Chinese fishermen came as Mrs. Arroyo was preparing for a planned visit to China this week to attend a commemorative summit between the 10-nation Association of Southeast Asian Nations (ASEAN) and China. Michael Golifardo Tan, AFP