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 awards sovereignty of Pedra Branca (Pulau Batu Puteh/Horsburgh Island) to Singapore, and Middle Rocks to Malaysia, but does 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. The Philippines retains a dormant claim to Malaysia's Sabah in northern Borneo. 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 & Internally Displaced Persons (IDPs)
In 2007, there were 15,174 Indonesian and 21,544 Burmese refugees in the country.
Trafficking in Persons
Malaysia is a destination and, to a lesser extent, a source and transit country for women and children trafficked for the purpose of commercial sexual exploitation, and men, women, and children for forced labour. Malaysia is mainly a destination country for men, women and children who migrate willingly from countries including Indonesia, Nepal, India, Thailand, China, the Philippines, Burma, Cambodia, Bangladesh, Pakistan and Vietnam to work, some of whom are subjected to conditions of involuntary servitude by Malaysian employers in the domestic, agricultural, construction, plantation and industrial sectors. A small number of Malaysians were reportedly trafficked internally and abroad to Singapore, China and Japan for commercial sexual exploitation.
Drug trafficking prosecuted vigorously and carries severe penalties. Heroin is still the primary drug of abuse, but synthetic drug demand remains strong. Ecstasy and methamphetamine is produced for domestic users and, to a lesser extent, the regional drug market.