The Sulu/Sulawesi Seas Littoral. The number of islands in the Sulawesi Sea and the Sulu Archipelago make it a difficult region to secure. Cooperation by all states bordering this region remained strong with U.S. counterterrorism efforts. Although Indonesia, Malaysia, and the Philippines have improved efforts to control their shared maritime boundaries – including through U.S.-funded efforts to enhance domain awareness in the waters south and southwest of Mindanao – the expanse remained difficult to control. Surveillance improved but remained partial at best, and traditional smuggling and piracy groups have provided an effective cover for terrorist activities, including the movement of personnel, equipment, and funds.

Southeast Asia is vulnerable to exploitation by illicit traffickers and proliferators given the high volume of global trade that ships through the region as well as the existence of smuggling and proliferation networks. Weak strategic trade controls, legal and regulatory frameworks, inadequate maritime law enforcement and security capabilities, as well as emerging and re-emerging infectious disease and burgeoning bioscience capacity, make Southeast Asia an area of concern for WMD proliferation and transit. Other than Singapore and Malaysia, strategic trade control laws that include controls over dual-use and end-use or "catch-all" controls are lacking in Southeast Asia. Assisting these countries to develop strong laws that meet international standards and effective targeting and risk management systems are major goals of the Export Control and Related Border Security program over the next few years.

The Southern Philippines. The geographical composition of the Philippines, spread out over 7,107 islands, make it difficult for the central government to maintain a presence in all areas. Counterterrorism operations over the past 13 years, however, have been successful at isolating the location and constraining the activities of transnational terrorists. U.S.-Philippines counterterrorism cooperation remained strong. Abu Sayyaf Group (ASG) members, numbering a few hundred, were known to be present in remote areas in Mindanao, especially the islands of Basilan and Sulu. Jemaah Islamiya members, of whom there are only a small number remaining, are in a few isolated pockets of Mindanao and the Sulu and Tawi-Tawi island groups. In these areas, local residents are either overtly supportive of the ASG or generally apathetic to its presence due to latent animosity toward the government, military, and police.

The United States began funding a law enforcement capacity building project for the Philippines through the Global Security Contingency Fund, which will increase the capacity of the Philippines to patrol its islands and coastline. Export Control and Related Border Security program efforts in recent years have been focused largely on working with the Philippines to pass a Strategic Trade Management Act. The emphasis on dual-use and end-use controls will help Philippine customs and other law enforcement interdict illicit items transiting and being trans-shipped through all ports in the Philippines.

The Comprehensive Agreement on Bangsamoro between the Philippine government and the Moro Islamic Liberation Front (MILF), if implemented successfully, may limit the size of safe havens within MILF-controlled areas in which terrorists could operate. The New People's Army maintained a nearly national presence, with a focus on rural and mountainous areas. Continued pressure from Philippine security forces made it difficult, however, for terrorists to organize, plan, raise funds, communicate, recruit, train, and operate.

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