Disputes - international:
Malaysia has asserted sovereignty over the Spratly Islands together with China, Philippines, Taiwan, Vietnam, and possibly Brunei; while the 2002 "Declaration on the Conduct of Parties in the South China Sea" has eased tensions over the Spratly Islands, it is not the legally binding "code of conduct" sought by some parties; Malaysia was not party to the March 2005 joint accord among the national oil companies of China, the Philippines, and Vietnam on conducting marine seismic activities in the Spratly Islands; disputes continue over deliveries of fresh water to Singapore, Singapore's land reclamation, bridge construction, maritime boundaries, and Pedra Branca Island/Pulau Batu Putih - but parties agree to ICJ arbitration on island dispute within three years; ICJ awarded Ligitan and Sipadan islands, also claimed by Indonesia and Philippines, to Malaysia but left maritime boundary in the hydrocarbon-rich Celebes Sea in dispute, culminating in hostile confrontations in March 2005 over concessions to the Ambalat oil block; separatist violence in Thailand's predominantly Muslim southern provinces prompts measures to close and monitor border with Malaysia to stem terrorist activities; Philippines retains a now dormant claim to Malaysia's Sabah State in northern Borneo; in 2003, Brunei and Malaysia ceased gas and oil exploration in their disputed offshore and deepwater seabeds and negotiations have stalemated prompting consideration of international adjudication; Malaysia's land boundary with Brunei around Limbang is in dispute; piracy remains a problem in the Malacca Strait
Illicit drugs:
transit point for some illicit drugs; drug trafficking prosecuted vigorously and carries severe penalties
