MANILA, Philippines – The government and Moro Islamic Liberation Front (MILF) rebels on Sunday (December 8th) signed a crucial power-sharing accord, paving the way for a final peace agreement, AFP reported.

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

President Benigno Aquino congratulated both parties on the annex, his spokesman Herminio Coloma said.

Copies of the agreement, released late Sunday, outline the powers that will be reserved by the national government, those that will held by the government of the autonomous area and those that will be shared by both.

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.