The 10 boys and 11 girls were rescued after police launched a simultaneous operation in seven states yesterday, Star online said today.
"We are also working closely with Interpol on a few of the children believed to have been taken to neighbouring countries," Penang state police chief Deputy Comm Abdul Rahim Hanafi told a press conference.
The case is being investigated under the country's of Anti-Human Trafficking Act, which carries a jail term of not less than three years and not exceeding 20 years upon conviction.