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 awarded sovereignty of Pedra Branca (Pulau Batu Puteh/Horsburgh Island) to Singapore, and Middle Rocks to Malaysia, but did 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; Philippines retains a dormant claim to Malaysia's Sabah State in northern Borneo; Per Letters of Exchange signed 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 and internally displaced persons:
refugees (country of origin): 81,146 (Burma) (2011)
Trafficking in persons:
current situation: 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 labor; 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 Malaysian citizens were reportedly trafficked internally and abroad to Singapore, China, and Japan for commercial sexual exploitation
tier rating:
Tier 2 Watch List - the Government of Malaysia does not fully comply with the minimum standards for the elimination of trafficking; however, it is making significant efforts to do so; while the government increased the number of convictions obtained under the Anti-Trafficking in Persons and Anti-Smuggling of Migrants Act during the year and continued public awareness efforts on trafficking, it did not effectively investigate and prosecute labor trafficking cases, and failed to address problems of government complicity in trafficking and lack of effective victim care and counseling by authorities (2009)
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