(Photo: CGTN)

At least two were killed and dozens were wounded when an improvised explosive device exploded on Monday near an entrance of a mall in Cotabato City in the Southern Philippines, police said.

Philippine military and police authorities said the explosion happened around 1:59 pm local time in front of a popular mall, where hundreds of people were shopping for the New Year's Eve celebration.

The victims have been sent to the nearest hospital, according to the local police.

Police said an unidentified man dropped a wrapped box in the area shortly before the explosion. An investigation is currently underway.