Malaysia today celebrated after being awarded a pair of islands with some of the world's best dive spots, ending a three-decade wrangle with Indonesia, and set its sights on other claims, including the Spratly Islands.

The World Court in The Hague ruled in favour of Malaysia yesterday, ending the dispute over the islands of Sipadan and Ligitan, located in tropical waters off Borneo.

Both islands are said to be rich in natural resources, while Sipadan is a major tourist destination, known as one of Southeast Asia's best diving spots and once described by world-famous French diver and filmmaker Jacques Cousteau as "an untouched piece of art".

In its ruling the International Court of Justice (ICJ) rejected claims by both countries that they had sovereignty over Ligitan and Sipadan based on treaties signed in the late 19th century by their respective colonial powers, Britain and the Netherlands.

Instead the world court said Kuala Lumpur had shown that it had asserted authority over the islands, notably in the 1930s with several environmental regulations, while Indonesia did not protest Malaysia's actions until 1969.

No ill-feelings for now

Prime Minister Dr Mahathir Mohamad said the court verdict should not harm political ties between the two countries as they had both agreed to accept the ruling whichever way it went.

But there could be more ill-feeling generated by other disputes which are yet to be resolved.

"Malaysian officials must be working hard now to ensure victory in the other border disputes," Abdul Razak Baginda, executive director of the Malaysian Strategic Research Centre, told AFP .

High on the list are the Spratly Islands in the South China Sea, which have been claimed by Brunei, Malaysia, the Philippines, Vietnam, Taiwan and China.

The island chain, believed to sit on vast oil and natural gas deposits, is seen as a potential flashpoint for armed conflict because all the claimants except Brunei have troops stationed in the area.

Fisherman from China, which claims the entire Spratlys chain, have clashed with the navies of rival Spratly claimants. The Philippines has accused China of building permanent structures on a reef claimed by Manila.

Pulau Batu Puteh

Malaysia also has a sea border dispute with Thailand in the north, and Thai fishermen regularly fall victim to the confusion as their boats are seized and they end up in jail.

And to the south, Malaysia and Singapore both claim the tiny Batu Puteh island which is just off the coast of Johor.

Singapore's claim is based partly on the fact that it has maintained a lighthouse on the rocky island since 1851, while Malaysia says it exercised sovereignty over the island in the early 16th century. The claim is now before the World Court. AFP