A mayor in the southern Philippine city said Tuesday gunmen were demanding ransom in exchange for the freedom of their Filipino Chinese trader captive.

Mayor Jojo Guiani said at a press briefing Conchita Atienza Tan, 73, remains in the hands of his kidnappers belonging to Saudi Kasan Kidnap for Ransom.

"Based on our information, the kidnappers already demanded ransom to the victims' family but Mrs. Tan's family is not coordinating with our police. We will strictly implement a no- ransom policy," Guiani said.

Tan was snatched by unidentified gunmen from Tan's residence in Cotabato City last Friday afternoon. A family driver and a security personnel were killed by the abductors.

The suspects boarded the victim to a watercraft and fled toward the town of Kabuntalan in Maguindanao, said the wife of Lucio Tan (not the Taipan business tycoon), but the owner of a LCT Hardware in Cotabato City.

Prompt military and police operations were launched to pursue the kidnappers and to rescue the victim.

The Moro Islamic Liberation Front (MILF) announced on Sunday that its Central Committee has issued directives to its fighters to join the rescue mission and to exert all efforts to secure Tan.