The Philippines' largest rebel group, the Moro Islamic Liberation Front (MILF), said on Sunday that 2014 is a "crucial year" for the peace negotiations with the government.

The MILF said the year 2014 is a time for both the rebel group and the government "to make hard and eventful decisions, which are political milestones in their talks that would ensure the establishment of the Bangsamoro government in 2016."

"Within the first quarter of this year, the parties must sign the comprehensive peace agreement to enable the Bangsamoro Transition Commission to finish the final draft of the Bangsamoro Basic Law for submission to President Benigno Aquino III, who will certify it as urgent bill in order to give just enough space and time for Congress to pass it into law," it said.

"Failure to do so will make the future gloomy," it added.

Last month, MILF and government negotiators signed a power- sharing agreement in Kuala Lumpur, Malaysia, leaving only one substantive issue normalization still to be discussed and finalized before a final peace pact or a comprehensive peace agreement can be forged.

The MILF expressed confidence that the remaining issues on the negotiating table can be resolved by both sides.

The MILF has been fighting government troops for decades to establish a self-rule Muslim state in southern Philippines.

The government and the MILF formally signed on Oct. 15, 2012 the framework agreement, a road map for final political settlement to end the decades-old armed struggle in southern Philippines.