The Philippines said that it would take a long time and extensive study before the issue of the country's claim on Malaysia's northern Borneo state of Sabah could finally be resolved.

President of the Philippines, Gloria Macapagal Arroyo confirmed in a press conference in Kuala Lumpur today that she had discussed the issue with Prime Minister Dr Mahathir Mohamad when they met yesterday.

"We agreed that we should move forward towards a cordial resolution of this issue," she said

"Of course, he understands we have to do this slowly, and with extensive consultation with our constituents and we have to form panels to study how this issue can be approached."

The Philippines' claim on Sabah dates back to 1962, before the formation of the Federation of Malaysia in 1963 which then consisted of Malaya, Singapore and the Borneo states of Sabah and Sarawak.

Until today, the Philippines has yet to formally renounce its claim on Sabah and the matter remained a thorny issue in its diplomatic relations with Malaysia.

According to Arroyo, the meeting yesterday was the first for both leaders where discussion was held about the possibility of resolving the issue.

"Previously, the issue was always swept under the rug," she said.

Asked if the Philippines has dropped its claim on Sabah, Arroyo said she could not make such a statement now without consulting the people of the Philippines first.

"But the thing is, we've to look for ways to resolve the issue," she reiterated.

Intervention

Arroyo was also asked about the basis on the Philippines' intervention in the International Court of Justice (ICJ) hearing on the claim to Sipadan-Ligitan islands by Malaysia and Indonesia.

"As long as the Philippines claim on Sabah is there, then we are duty-bound to enter our intervention in any international proceeding that has to do with the islands in that area," she said.

In June, the Sipadan-Ligitan case was heard by the ICJ in the Hague, Netherlands when Malaysia and Indonesia could not come to any bilateral agreement on the issue. However, the Philippines intervened in the hearing as it feared that the court's decision on the case may adversely affect its claim to Sabah.

'Beyond expectations'

On the whole, Arroyo described her visit to Malaysia which is also her first state visit since she took office in January this year as "beyond expectations".

The president said she did not expect any agreement on the peace process between the Philippines government and the rebel Moro Islamic Liberation Front (MILF) would be signed yesterday.

She added that an agreement should not be rushed just to meet a deadline.

"What is important is that they stick to their ground and develop it on the ground so that our Muslim brothers will find it much better to be in the mainstream than outside fighting for cessation (from the Philippines)," Arroyo said.

"Though I was not pinning my hopes on the signing to take place within my visit, two important accords were signed during this visit. That alone exceeds my expectations," she added.

Peace accords

Yesterday, two important peace agreements were signed in Kuala Lumpur as Arroyo arrived in the capital city for her first state visit since she assumed power in January.

The first accord united two main Muslim separatist groups, the Moro Islamic Liberation Front (MILF) with the Moro National Liberation Front (MNLF), to promote peace and development in the impoverished region of Mindanao in southern Philippines.

The second accord between the Philippines government and the MILF rebel forces is a signed set of guidelines for the cessation of hostilities in Mindanao

The 12,500-strong MILF was set up in 1978 as a splinter of the MNLF which signed a peace treaty with the government in 1995 to end its 24-year separatist rebellion.

Arroyo's visit also focused on the need to exploit the vast potentials of the BIMP-EAGA (Brunei-Indonesia-Malaysia-the Philippines-East Asean Growth Area) and attract Malaysian investors to extend their concerns, especially the cultivation of oil palm, to Mindanao.

The last time a president of the Philippines came to Malaysia for a state visit was in 1993 when Fidel Ramos met with Mahathir to discuss the EAGA.