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 agreed in September 2008 to resolve their offshore and deepwater seabed dispute, resume hydrocarbon exploration and renounce any territorial claims on land; piracy remains a problem in the Malacca Strait
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