A woman and her two daughters have been charged with trafficking in babies after police uncovered a baby-selling ring and rescued five infants.

Lim Kim Wan, a 56-year-old insurance agent and her two daughters who are in their 30s, pleaded not guilty to charges of selling three one-day-old baby girls, according to English newspapers the Star and New Straits Times .

The trio face up to 20 years in jail if convicted, the reports said, adding that the three babies were born to two Indonesian women and a Filipina.

Police and court officials could not be reached for comment.

On Monday, police said they had busted the baby-selling syndicate which had been operating for more than five years and arrested 13 people including a doctor, as well couples intending to buy the babies.

Federal criminal investigation chief Bakri Zinin said the syndicate bought babies from women, mainly foreign maids working in Malaysia, who were talked out of having abortions and given free healthcare during their pregnancy.

Zinin said the babies are sold between RM15,000-RM20,000 each, while the women are paid RM2,000.

Police are still tracking down other suspects in the syndicate.

- AFP