Malaysia wins court fight over Sulu heirs’ US$15 billion award

MALAYSIA won a legal battle in France that will likely cancel an award of about US$15 billion over territorial claims related to the present day Borneo state of Sabah.

The Paris court of appeals ruled on Tuesday (Jun 6) that the arbitration court that ordered Malaysia to make the payment to the so-called heirs of Sulu, the erstwhile rulers of the region, didn’t have jurisdiction in the case.

The dispute is linked to the Sulu heirs’ years-long claims to the state of Sabah. The then-sultanate had leased Sabah to a British company in 1878 and the Borneo state was later absorbed into Malaysia. The Sulu sultanate ruled the islands in the Sulu Archipelago, which are part of Mindanao in today’s Philippines. 

A French Arbitration Court in Paris last year ordered Malaysia to pay the Sulu descendants over their claim. The government filed an application to cancel the award in Paris, while a Luxembourg court set aside the legal action payment, Malaysia said in January.

In March, a court in Paris upheld a stay order obtained by Malaysia on enforcement of the award. BLOOMBERG