Bomb blast in southern Philippines wounds two

MANILA, Jan 5 (Reuters) Suspected Islamic militants set off a bomb near a fast-food restaurant in the southern Philippines today wounding two people, police said.

Officials said a crude bomb exploded near the restaurant in Cotabato City, one of the larger cities on the southern island of Mindanao, where the government is battling long-running Muslim and communist insurgencies.

Three improvised bombs were placed in a box and left on a road outside a store, regional police Chief Superintendent German Doria told reporters. Only one went off.

''Before the explosion, we were receiving intelligence reports of a possible attack in the city,'' Doria said.

Police spokesman Samson Obatay said they suspected members of local Muslim terrorist group Abu Sayyaf and regional network Jemaah Islamiah could be behind the attack.

''We have intercepted a report that they will carry out attacks in major cities in Mindanao, including our city,'' Obatay told reporters, adding the make and type of explosive devices were similar to previous bombs assembled by the militants.

Last October, an improvised bomb near a shopping mall in downtown Cotabato City damaged property but there were no wounded.

The bomb attack came as President Gloria Macapagal Arroyo was meeting with top defence and military officials in Manila's main military camp, ordering them to defeat all security threats facing the archipelago before she steps down in 2010.

The Philippines has been on alert against possible militant attacks ahead of a gathering of 16 leaders from East Asia next week on the central island of Cebu, a month after the meetings were postponed, ostensibly due to a typhoon.

The British and Australian governments had warned militants were planning to attack the summit in December but the Philippine government has denied the meeting was cancelled because of security concerns.

The British, Australian and Canadian embassies in Manila still advise their citizens against travelling to Cebu but Manila has insisted there is no security threat.

REUTERS MQA BS1357