towards preventing tension especially in the territorial dispute in the South China Sea. The ongoing insurgency in Southern Thailand could impact Malaysia-Thailand bilateral relations. Malaysia considers the issue an internal problem of Thailand and is prepared to cooperate for mutual benefits. The security situation in Southern Thailand is a major concern for Malaysia and its resolution depends on the ability of the Thai Government to resolve the insurgency and improve the socio-economic well being of the Moslem populace. The insurgency however should not affect Malaysia-Thailand relations. The internal problems in Myanmar, Thailand and Cambodia as well as other members of ASEAN are important to Malaysia’s strategic interests and ASEAN’s stability. The resolution of these issues is the foundation of regional stability, peace and prosperity. Malaysia regards the “prosper-thy-neighbour” concept as important to the creation of true stability within the neighbouring countries. In overall terms Malaysia’s relation with ASEAN members is a critical mutual economic security net. Non-Traditional Security Issues Traditional security issues remain the principal threats to Malaysia’s sovereignty. However, non-military or asymmetric threats have become major concerns and have the ability to challenge government authority and the potential to undermine regional security and stability. Terrorism has emerged as a long term threat to regional and international security after the terrorist attacks of 11 September 2001 on the US. Currently the two active and organised militant and terrorist groups are the Abu Sayyaf Group (ASG) and Jamaah Islamiah (JI)). ASG carries out kidnapping -for-ransom to fund its activities in the Southern Philippines. ASG’s activities have security implications to Malaysia especially MALAYSIA’S NATIONAL DEFENCE POLICY Page 9