Malaysia takes its turn as rotating chair of the 10-member Association of Southeast Asian Nations as the bloc contends with Beijing's assertiveness in the South China Sea and a faltering ASEAN peace process for Myanmar, where the ruling military plans to hold an election this year.

The Philippines and China agreed to seek common ground and find ways to cooperate despite their disagreements in the South China Sea, their foreign ministries said on Thursday, as heated rows persist over vessels deployed around disputed features.

Southeast Asian foreign ministers gathered Sunday for their first meeting this year under the regional bloc's new chair, Malaysia, seeking a breakthrough over Myanmar's drawn-out civil war and territorial disputes in the South China Sea.

LANGKAWI, Malaysia (Reuters) - The regional bloc ASEAN and China should make headway on a protracted code of conduct for the South China Sea by tackling thorny "milestone issues", including its scope and if it can be legally binding, the Philippines' top diplomat said on Saturday.