While the world focuses on Syria and Iraq, the menace of Islamic State is quietly expanding into Southeast Asia.

Eight thousand miles from the Middle East frontline, the Philippines has become the region’s main transit hub for Jihadists traveling to Syria, complete with a network of terror training camps.

Not that this is widely known – even by those living in the country. Contrasting against strong-armed efforts in Malaysia and Indonesia, the Filipino government – preferring to label terrorists as ‘criminal gangs’ or ‘bandits’ – has appeared weak.

Until now, that is. Enter the new president: Rodrigo Duterte.

Known as “Duterte Harry” or “the Punisher” after allegations of vigilante killings to cut crime in the city of Davao, where he served as mayor, the President’s pledges include dumping a hundred thousand gangsters’ corpses in the Manila Bay. Gangs, bandits or terrorists – the growing number with affiliation to Islamic State warrant his immediate focus.

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Myriad Militant Problem

Terrorism is nothing new to the Philippines. Separatists, Communists, Islamists have all utilised the southern island of Mindanao and the surrounding Sulu Sea archipelago as a remote safe haven for decades.

Today’s is a myriad militant problem riddled with competing interests, egos and continual splits.

The plethora of rival groups plays into the hands of more entrenched and radical elements with a global agenda and deeper financing. Islamic State has taken up where Al-Qaeda left off in building links to militias such as Jemaah Islamiyah, Abu Sayyaf Group and the Bangsamoro Justice Movement.

Islamic State’s motive in the region is clear. The Philippines is the only immediately viable launch pad for its Southeast Asia aspirations. Obtaining a foothold here would facilitate a satellite province, or wilayat, endorsing the Islamic State’s objective of a “borderless sphere of influence in Asia.”

Quite how this ambition plays out will be determined in part by a political decision looming June 30 on autonomy for the Bangsamoro region of Mindanao.

Amidst all the infighting, groups such as the Moro Islamic Liberation Front have been supporting the legal process to create the Bangsamoro Autonomous Region.

The aspiration for the Bangsamoro Basic Law has significantly reduced terrorism in Mindanao. For now, the region’s separatists are likely to resist ties to Islamic State for fear it could derail progress toward autonomy. Any failure to enact the law, however, is almost certain to trigger a resurgence of attacks and a search for scale.

Islamic State has demonstrated an ability to seize opportunities offered by regional extremist conflicts. It operates by first requiring a proposal detailing the local militia’s governance strategy. The next stage is identifying a collectively chosen leader.

Among its quarrelsome Filipino members – whose rival leaders have on occasion ordered their men to shoot at each other – this is likely to be the biggest sticking point in any affiliation with IS.

Nevertheless, the potential rewards for both side are big enough to motivate solutions. The porous nature of maritime routes into Malaysia and Indonesia, and a lack of security around the Mindanao islands, offers Islamic State extensive supply and logistical routes.

Despite declarations to the contrary from the Philippine government and security agencies, Islamic State has already made in-roads to some of the local jihadist groups in Mindanao.

Black Standard

A stronghold of conservative Sunni Islam, the Mindanao people are largely impoverished, long politicised, disenfranchised and aggrieved. They’re a Muslim minority in a country that is 87% Roman Catholic. Parts of Mindanao and the Sulu Archipelago once belonged to the Islamic Sultanate of Sulu, founded in 1405 – a reference point not lost on Islamic State’s recruiters. The Black Standard synonymous with al-Qaeda and now Islamic State has been seen with the words ‘Islamic State of Mindanao and Sulu’ on several videos and social media pages of Filipino extremists this year.

The area is fertile ground for Islamic State’s efforts to spread its Salafist ideology, and can become a base for further allegiances across Southeast Asia. Such ties are already taking root, as demonstrated by the attacks on Jakarta in January, the arrest of suicide bombers during planning phases in Kuala Lumpur the same month, and the ongoing internment of suspected jihadists across Malaysia since the middle of last year.

Should the Bangsamoro Basic Law pass on June 30, turning the region historically referred to as Bangsamoro, or ‘region of the Moros,’ into a politically autonomous province, then Islamic fundamentalism will be championed by lawful separatism. It should help to slow the local aspirations of Islamic State.

Failure to ratify, on the other hand, could be a catalyst for resurgent separatist terrorism. As in the past, Mindanao could become a total no-go zone for the government. Without doubt, this would serve to benefit the plethora of radical jihadist militants and their aspirations, including Islamic State.

The new President has expressed support for the Bangsamoro Basic Law and wants to move toward federalism to bring peace to Mindanao.

If he can achieve this, the Punisher would warrant a new name: the Peacemaker.

But such rational thinking might be too much to expect. This is, after all, a president who publicly entertained rape fantasies and called Pope Francis a ‘son of a whore’ after the papal entourage tied up traffic in the already-busy streets of Manila last year. His unapologetic stance toward the Vatican, though distasteful toward many of his Catholic constituents, may be an indication of his refusal to back down from the more existential threat posed by Islamic State.

The authors of this report are Phill Hynes and Hrishiraj Bhattacharjee, analysts at ISS Risk, a frontier and emerging markets political risk management company covering North, South and Southeast Asia from its headquarters in Hong Kong.