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

Refugees and internally displaced persons:

refugees (country of origin): 15,174 (Indonesia); 21,544 (Burma)
(2007)

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 South and Southeast Asia to work, some of whom are
subjected to conditions of involuntary servitude by Malaysian
employers in the domestic, agricultural, construction, plantation,
and industrial sectors; to a lesser extent, some Malaysian women,
primarily of Chinese ethnicity, are trafficked abroad for commercial
sexual exploitation
tier rating: Tier 2 Watch List - Malaysia improved from Tier 3 to
the Tier 2