Conduct of Parties in the South China Sea (DOC) between ASEAN and China that was signed in Phnom Penh on 4 November 2002 has contributed to reducing the tension and build confidence among the claimants. The DOC is an indication of the willingness of the claimants to abide with the international norms and laws. Regional diplomatic relations could also be affected by other maritime territorial disputes among ASEAN members in the South China Sea, the Sulawesi Sea and the Straits of Malacca. Diplomacy should be the preferred mean of resolving Malaysia’s overlapping claims with its neighbours in the above areas. Malaysia remains committed to the 1982 United Nations Convention on the Law of the Sea and to its maritime boundaries as contained in the “Peta Baru 1979.” However, the issue of the Philippines’ claim over Sabah remains unresolved. The resultant maritime dispute and the claim over Sabah as a whole could undermine Malaysia’s territorial integrity as a sovereign nation and ultimately weaken the ASEAN spirit and ASEAN Charter. Indonesia’s continued prosperity will only be achieved following the resolution of the main causes of its political and social conflicts. Friendship and mutual respect are important elements of the bilateral relation between Malaysia and Indonesia and is supported by the close historical and social links between the two countries. Of late bilateral relations between Malaysia and Singapore are showing signs of improvement despite several outstanding issues. These issues however have not hindered cooperation between Malaysia and Singapore particularly in economics and defence. Malaysia-Vietnam relations have improved significantly particularly following the signing of the defence cooperation agreement in 2008. This has contributed MALAYSIA’S NATIONAL DEFENCE POLICY Page 8