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Disputes - international:
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involved in complex dispute with China, Malaysia, Taiwan, Vietnam and possibly Brunei over the Spratly Islands, known locally as the Kalayaan (Freedom) 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; Philippines retains a 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
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Illicit drugs:
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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; domestic methamphetamine production is a growing problem; remains on Financial Action Task Force Non-Cooperative Countries and Territories List for continued failure to address deficiencies in money-laundering control regime
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