(Muslim women display a banner during a gathering in support of the signing of a final peace pact between the government and the Moro Islamic Liberation Front (MILF), in Manila March 27, 2014. REUTERS/Al Falcon )

The Philippines and its largest Muslim rebel group, the Moro Islamic Liberation Front (MILF), on Thursday signed a final peace pact, ending about 45 years of conflict that has killed more than 120,000 people in the country’s south.

The fight against Muslim separatists and Maoist guerrillas for almost five decades has stunted growth in resource-rich rural areas, besides scaring off potential investment in mines, plantations, energy and infrastructure.

Under the pact, Muslim rebels agreed to disband guerrilla forces, surrender weapons, and rebuild their communities while the government gives them self-rule with wider powers to control their economy and culture.

But potential threats to lasting peace remain, ranging from a small breakaway MILF faction to criminal gangs, Islamist militants linked to al Qaeda and feuding clans, all a reminder to potential investors that the region is volatile.