World Bulletin / News Desk

The Philippine government and Muslim rebels signed a crucial power sharing accord, paving the way for a final peace agreement.

The accord, signed by negotiators from the government and MILF representatives in Kuala Lumpur, is yet another step towards finally ending the bloody insurgency in the southern Philippines.

A joint statement said both sides had signed "the agreement on the delineation and sharing of power between the central government and the Bangsamoro (Filipino Muslim) Government" within the projected autonomous area.

The statement added that both parties were now "confident" that they could soon sign the last remaining annex on normalisation and complete the comprehensive peace agreement by January 2014.

The accord also sets the parameters of the "Bangsamoro assembly" that will govern the autonomous area while ensuring that tribal groups, Christian settlers and women are represented.

While foreign policy, defence, monetary policy, immigration and global trade will remain under the control of national government, the Bangsamoro government will have powers over agriculture, employment, urban development, public works and environmental protection, the agreement said.