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, and maritime boundaries in the Johor and Singapore Straits; in November 2007, the ICJ will hold public hearings in response to the Memorials and Countermemorials filed by the parties in 2003 and 2005 over sovereignty of Pedra Branca Island/Pulau Batu Puteh, Middle Rocks and South Ledge; ICJ awarded Ligitan and Sipadan islands, also claimed by Indonesia and Philippines, to Malaysia but left maritime boundary and sovereignty of Unarang rock in the hydrocarbon-rich Celebes Sea in dispute; 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 dormant claim to Malaysia's Sabah State in northern Borneo; Brunei and Malaysia are still considering international adjudication over their disputed offshore and deepwater seabeds, where hydrocarbon exploration was terminated in 2003; Malaysia's land boundary with Brunei around Limbang is in dispute; piracy remains a problem in the Malacca Strait
Refugees and internally displaced persons:
refugees (country of origin): 19,153 (Indonesia), 14,208 (Burma) (2006)
Trafficking in persons:
current situation: Malaysia is a destination and, to a lesser extent, a source and transit country for women and children trafficked for the purposes of sexual exploitation; foreign victims, mostly women and girls from Burma, Cambodia, China, Indonesia, the Philippines, Thailand, and Vietnam, are trafficked to Malaysia for commercial sexual exploitation; economic migrants from countries in the region who work as domestic servants or laborers in the construction and agricultural sectors face exploitative conditions in Malaysia that meet the definition of involuntary servitude; some Malaysian women, primarily of Chinese ethnicity, are trafficked abroad for sexual exploitation
tier rating: Tier 3 - lack of satisfactory progress in combating trafficking in 2006; the government failed to prosecute traffickers arrested and detained under existing law and failed to provide adequate shelters and services to victims of trafficking
Illicit drugs:
drug trafficking prosecuted vigorously and carries severe penalties; heroin still primary drug of abuse, but synthetic drug demand remains strong; continued ecstasy and methamphetamine producer for domestic users and, to a lesser extent, the regional drug market
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