President Gloria Macapagal-Arroyo established Muslim town along Manila's Carlos Palanca Street, saying the Filipino-Muslims in southern Philippines should have a place of their own in Metro Manila.

"We should have peace and order. I hope our brother Muslims begin respecting the Philippine Constitution," she said.

The new Muslim town is an extension of the old Muslim town, which was established in Manila by former First Lady Imelda Marcos at the height of the separatist war waged by former Moro national Liberation Front chairman Nur Misuari in the 70s.

Members and leaders of the Muslim community in Metro Manila asked Arroyo to establish barter trade, which they have successfully managed in their hometown in Mindanao, southern Philippines.

It is not known if the request will be granted. The Philippines government has not allowed the establishment of free trade areas outside of the international airports, because they have become a conduit for smugglers.

Arroyo has been courting the Filipino Muslims so as not to alienate them. The whole world is on the look out for terrorists who were responsible for terror attacks in the U.S. which killed more than 6,000 on Sept 11.