Disputes - international:
involved in complex dispute with China, Philippines, Taiwan, Vietnam and possibly Brunei over the Spratly Islands; the 2002 "Declaration on the Conduct of Parties in the South China Sea" has eased tensions but falls short of a legally binding "code of conduct" desired by several of the disputants; disputes over deliveries of fresh water to Singapore, Singapore's land reclamation, bridge construction, maritime boundaries, and Pedra Branca Island/Pulau Batu Putih persist - parties agree to ICJ arbitration on island dispute within three years; ICJ awarded Ligitan and Sipadan islands off the coast of Sabah, also claimed by Indonesia and Philippines, to Malaysia; a 1 kilometer segment at the mouth of the Golok River remains in dispute with Thailand; Philippines retains a now dormant claim to Malaysia's Sabah State in northern Borneo based on the Sultanate of Sulu's granting the Philippines Government power of attorney to pursue the Sultanate's sovereignty claim; in 2003 Brunei and Malaysia ceased gas and oil exploration in their offshore and deepwater seabeds until negotiations progress to an agreement over allocation of disputed areas; Malaysia's land boundary with Brunei around Limbang is in dispute
Illicit drugs:
transit point for some illicit drugs; drug trafficking prosecuted vigorously and carries severe penalties
