Disputes - international:
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 2008, ICJ awarded sovereignty of Pedra Branca (Pulau Batu Puteh/Horsburgh Island) to Singapore, and Middle Rocks to Malaysia, but did not rule on maritime regimes, boundaries, or disposition of South Ledge; land and maritime negotiations with Indonesia are ongoing, and disputed areas include the controversial Tanjung Datu and Camar Wulan border area in Borneo and the maritime boundary in the Ambalat oil block in the Celebes Sea; 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; per Letters of Exchange signed in 2009, Malaysia in 2010 ceded two hydrocarbon concession blocks to Brunei in exchange for Brunei's sultan dropping claims to the Limbang corridor, which divides Brunei; piracy remains a problem in the Malacca Strait

Refugees and internally displaced persons:
refugees (country of origin): 87,036 (Burma) (2016)
stateless persons: 10,931 (2016); note - Malaysia's stateless population consists of Rohingya refugees from Burma, ethnic Indians, and the children of Filipino and Indonesian illegal migrants; Burma stripped the Rohingya of their nationality in 1982; Filipino and Indonesian children who have not been registered for birth certificates by their parents or who received birth certificates stamped "foreigner" are not eligible to attend government schools; these children are vulnerable to statelessness should they not be able to apply to their parents' country of origin for passports

Trafficking in persons:
current situation: Malaysia is a destination and, to a lesser extent, a source and transit country for men, women, and children subjected to forced labor and women and children subjected to sex trafficking; Malaysia is mainly a destination country for foreign workers who migrate willingly from countries, including Indonesia, Bangladesh, the Philippines, Nepal, Burma, and other Southeast Asian countries, but subsequently encounter forced labor or debt bondage in agriculture, construction, factories, and domestic service at the hands of employers, employment agents, and labor recruiters; women from Southeast Asia and, to a much lesser extent, Africa, are recruited for legal work in restaurants, hotels, and salons but are forced into prostitution; refugees, including Rohingya adults and children, are not legally permitted to work and are vulnerable to trafficking; a small number of Malaysians are trafficked internally and subjected to sex trafficking abroad
tier rating: Tier 2 Watch list - Malaysia does not fully comply with the minimum standards for the elimination of trafficking; however, it is making significant efforts to do so; in 2014, amendments to strengthen existing anti-trafficking laws, including enabling victims to move freely and to work and for NGOs to run protective facilities, were drafted by the government and are pending approval from Parliament; authorities more than doubled investigations and prosecutions but convicted only three traffickers for forced labor and none for sex trafficking, a decline from 2013 and a disproportionately small number compared to the scale of the country’s trafficking problem; NGOs provided the majority of victim rehabilitation and counseling services with no financial support from the government (2015)

Illicit drugs:
drug trafficking prosecuted vigorously, including enforcement of the death penalty; 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