Disputes - international: Philippines claims sovereignty over certain of the Spratly Islands, known locally as the Kalayaan (Freedom) Islands, also claimed by China, Malaysia, Taiwan, and Vietnam; the 2002 "Declaration on the Conduct of Parties in the South China Sea," has eased tensions in the Spratly Islands but falls short of a legally binding "code of conduct" desired by several of the disputants; in March 2005, the national oil companies of China, the Philippines, and Vietnam signed a joint accord to conduct marine seismic activities in the Spratly Islands; Philippines retains a 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 a sovereignty claim on his behalf; maritime delimitation negotiations continue with Palau
Illicit drugs: domestic methamphetamine production has been a growing problem in recent years despite government crackdowns; major consumer of amphetamines; longstanding marijuana producer mainly in rural areas where Manila's control is limited