Disputes - international:
involved in complex dispute over Spratly Islands with China,
Malaysia, Taiwan, Vietnam and possibly Brunei; claimants in November
2002 signed the "Declaration on the Conduct of Parties in the South
China Sea", a mechanism to ease tension but which fell short of a
legally binding "code of conduct"; Sultanate of Sulu granted
Philippines Government power of attorney to pursue its sovereignty
claim over Malaysia's Sabah State but Malaysia rejects claim
Illicit drugs:
exports locally-produced marijuana and hashish to East Asia, the
US, and other Western markets; serves as a transit point for heroin
and crystal methamphetamine