KOTA KINABALU, Malaysia: What started as a lovers' spat ended in tragedy.

An Indonesian labourer picked a fight with his girlfriend, a salesgirl who had just come home from work at a nearby shopping centre about 10.30pm on Tuesday.

The couple, Milda Kunda, 29, and Budi Santoso, 30, had been renting a house in Kampung Kuala Penampang, Sulaman.

Neighbours said they had frequently heard the couple arguing in the four months they had been staying there.

"That night, however, Budi picked up a machete and slashed Milda's neck, killing her," city police chief superintendent Rowell Marong said.

Budi later stabbed himself in the belly.

Their bodies were found lying about two metres apart on the road next to their house by a neighbour on the way to work at 7am yesterday.

Both bodies were sent to Queen Elizabeth Hospital for a post-mortem.

Police have not ruled out the possibility of a third person killing the victims. -NST