Powerful bomb exploded 12 December in General Santos city market southern Mindanao region, killing 14, injuring 70. No claim of responsibility. Government and New People’s Army (NPA) announced ceasefires for Christmas celebration from 16 December to 5 January. Soldiers and NPA rebels clashed in Negros Occidental province in central Visayas region 20 December; 1 rebel and 1 soldier killed. Moro Islamic Liberation Front reportedly agreed to resume peace talks with government in February after talks ended in Malaysia 22 December.

MILF filed protest with Malaysian-led International Monitoring Team after military reportedly launched aerial assault on MILF area in Maguindanao province, Mindanao. At least 10 killed in attack, reportedly against Abu Sayyaf group and kidnapping gangs. Military chief claimed action not in violation of truce. Police-protester clashes over job cuts and land reform at plantation owned by family of former President Tarlac province left at least 7 dead.

Soldiers from Brunei joined 50 Malaysian observers 20 October to monitor truce between rebel Moro Islamic Liberation Front (MILF) and Philippine government. Ceasefire and International Monitoring Team are MILF preconditions for peace talks with government - expected to resume after Ramadan. Talks with New People’s Army, armed wing of Communist Party of the Philippines (CPP), remain stalled after President Gloria Arroyo ordered review of peace negotiations with leftist groups because of their links with international terrorist organisations, sparking accusations of peace-talk sabotage from National Democratic Front, political arm of CPP.

Moro Islamic Liberation Front (MILF) and government to formally resume peace talks early October, including long-delayed discussion of political and economic issues; MILF to propose autonomous rule. Persistent reports linking MILF to Jemaah Islamiyah (JI) denied by MILF. Government to hold separate talks with MILF on how to remove JI and criminal gangs from Mindanao. Malaysian inspection monitors advance team arrived Mindanao 10 September; scheduled inspection of MILF base in Cararao mountains postponed until after Ramadan. Military attacked base of New People's Army, military wing of communist National Democratic Front (NDF), 23 September, killing 9. Attack came after August breakdown of talks between government and NDF.

Communist National Democratic Front (NDF) asked for postponement of new round of peace talks in Norway after U.S. kept NDF on terrorist list. NDF military wing, New People’s Army, clashed with government troops 6 August; 20 killed. Military helicopters launched assault on kidnapping syndicate “Pentagon gang”, who have ties to Moro Islamic Liberation Front (MILF), in southern Mindanao 13 August, killing 14 gunmen. Peace talks between Philippines government and MILF delayed over terms for peace monitors. Malaysia (and other Muslim nations) to send 60 monitors to oversee truce between MILF and government. Seventeen Abu Sayyaf members sentenced to death 13 August for kidnappings and beheadings between 2000-2001.

Peace talks with Moro Islamic Liberation Front (MILF) further delayed due to disagreement over presence of government troops in former rebel base on Mindanao and failure to drop terrorism charges against MILF leaders. President Arroyo received domestic praise, international criticism for withdrawing 51 peacekeepers from Iraq to save hostage.

Unexpectedly smooth election process concluded 23 June as Congress declared President Gloria Macapagal Arroyo winner of 10 May elections. Supporters of defeated Fernando Poe Jr. protested against result, claimed fraud. Post-election security fears heightened as 3 explosive devices found in Manila outside Catholic church, interior and defence department buildings 20-21 June. National security adviser Norberto Gonzales said new government to give leaders of Moro Islamic Liberation Front less than 6 months to expel 30 Jemaah Islamiah members believed to be using its hideouts in southern Mindanao island. Government held talks with Communist National Democratic Front (NDF) in Norway 22 June. Talks focused on social/economic reforms, support from government for removal of NDF from EU and U.S. terror lists, and release of prisoners. No significant advances - talks to resume in August.

Unofficial election results put Fernando Poe Jr. behind incumbent President Gloria Macapagal Arroyo, whose political allies gained control of House of Representatives and Senate. Final results delayed until mid-June. 10 May elections marred by violence and fraud accusations. Over 100 killed in 3- month run-up to poll. Senior Abbu Sayyaf leader, Usman Lidjal, arrested 21 May. 3 militants killed, 7 captured in raid to free hostages 26 May. 4 other hostages freed 24 May after ransom paid.

Campaigning continued ahead of 10 May presidential elections. President Arroyo and Fernando Poe Jr. equal in polls. Third-ranked former education secretary Raul Roco pulled out for health reasons. Government and communist National Democratic Front (NDF) met for third round of formal talks 26-29 April. Three female suspected members of communist New People's Army (NPA) released 21 April as part of confidence building plan to free 32 political prisoners by 4 May. Three NPA killed 25 April in clash with troops in southern Mindanao island, while 6 Abu Sayyaf members, including senior leader Hamsiraji Sali, killed in clash with Philippine troops on southern Basilan island 8 April. Ten Abu Sayyaf suspects remained at large after southern jailbreak. Talks with Moro Islamic Liberation Front (MILF) expected to resume in Kuala Lumpur in May.

Clashes on southern island of Jolo between marines and Abu Sayyaf guerrillas claimed at least 10 lives 7 March. Fernando Poe Jr to run in 10 May presidential elections after Supreme Court ruled him natural-born Filipino. Malaysian ceasefire observers started inspections of Moro Islamic Liberation Front (MILF) bases as one of preconditions for resumption of formal peace talks. Malaysian observers arrived shortly after army troops shelled rebel positions in 1 area due for inspections. Shelling came after MILF rebels ambushed soldiers chasing gunmen who kidnapped and killed 4 farmers in western Mindanao. Ferry disaster 26 February left 119 people confirmed dead or missing. Four Abu Sayyaf members arrested 30 March, including man who claims responsibility for ferry explosion, and explosives seized; President Arroyo claimed her government had foiled “Madrid-level” terror attack in Manila.