Press Secretary Ignacio Bunye said Badawi also called for the resumption of talks as soon as possible, noting that the Prime Minister "was as eager as everybody" to see the negotiations move forward.
Badawi expressed regret that Malaysia’s planned palm oil project in Mindanao did not push through because of the insurgency, considering it a "missed opportunity," Bunye said.
Bunye said Mrs. Arroyo appealed for Malaysia’s continued support to assure the "good faith" and commitment of the Philippine government for a peace settlement.
The peace talks were stalled recently over issues of ancestral domain and territorial boundaries.
"The President mentioned that we are willing to grant this (ancestral domain) but this should be done within the framework of the Constitution," Bunye said without giving details.
The two leaders are here for the ASEAN-China commemorative summit to celebrate the 15th year of dialogue between the two sides.
Among the issues Manila has long been pushing for is a code of conduct in settling regional issues, especially those that pose potential flashpoints.
However, it is unlikely to be adopted in ASEAN’s Cebu summit next month, according to Foreign Affairs Undersecretary Erlinda Basilio.
Basilio said ASEAN and China will be working toward the eventual adoption of the code in the next 15 years.
"It is a Philippine initiative and ASEAN welcomes it. For quite a number of years, it is still there, but we have to work closely with China to ensure that this regional code of conduct will work. We are now comfortable working with China," Basilio said.
A draft code of conduct for claimants in the contested territories was expected to be presented, amended and scrutinized by the leaders before initialing the document during the ASEAN-China commemorative summit here.
Once adopted, the code of conduct will be more binding and it will give meaning to the ASEAN-China relationship.
Meanwhile, the Philippines and China signed five more agreements for the planned expansion of a railway network linking Metro Manila to northern Luzon, the establishment of three biofuel plants and mining investment.
Mrs. Arroyo and other officials said the government will continue to convince China to likewise invest in the South Rail project.
Francis Chua, president of the Federation of Filipino-Chinese Chambers of Commerce and Industry, said they were eyeing an initial $200-million funding for the rail project.
China CAMC Engineering Co. Ltd. entered into separate agreements with BMSB Integrated Biofuels Co., the Negros Southern Integrated Biofuels Co. and Zamboanga del Norte Bioenergy Corp.
The fifth agreement was between Sultan Energy (MG Mining) and Harbin Power Engineering Co. Ltd. — With Pia Lee-Brago