THE Paris Court of Appeal has set 9 December as the date to deliver its decision on Malaysia’s application to annul a USD14.9 billion arbitration award granted to individuals claiming to be heirs of the defunct Sulu Sultanate.
Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said confirmed the decision in a statement, following a hearing on 7 July in which the court concluded its deliberations on the merits of the annulment.
Azalina revealed that the claimants had sought to postpone the proceedings in order to respond to a written opinion submitted by the Public Prosecutor of France, but their request was rejected by the court.
“In this context, Malaysia places its confidence in the Paris Court of Appeal’s process and decision in bringing a definitive end to the so-called Sulu Claimants’ illegal global enforcement efforts, similar to the positions adopted by the Spanish and Dutch courts,” she said.
The Malaysian Government reiterated its call for greater transparency in third-party litigation funding, warning of its potential misuse against sovereign nations.
“Malaysia at the same time continues to advance its efforts to promote a global framework that places transparency at the centre of third-party litigation funding, ensuring that a mechanism intended to promote access to justice is not misused as an instrument of lawfare against sovereign states,” Azalina added.
“International arbitration must be protected from attempts to extort sovereign states under the guise of arbitration claims.”
She further emphasised that the MADANI Government remains unwavering in its defence of Malaysia’s sovereignty and the integrity of international arbitration mechanisms.
The claim stems from proceedings initiated by eight Filipino nationals who assert descent from the long-defunct Sulu Sultanate. In 2019, a court in Madrid appointed Gonzalo Stampa as arbitrator in the case against Malaysia over historical arrangements concerning Sabah. However, Stampa’s appointment was later annulled by a Spanish court.
Despite this, on 28 February 2022, Stampa issued a final award in favour of the claimants through what Malaysia maintains was an unlawful arbitration process. The award instructed Malaysia to pay USD14.9 billion in compensation.
Malaysia has since recorded a string of legal successes, including a ruling by the French Supreme Court in November last year, which rejected the Sulu group’s legal challenge in its entirety. That decision effectively invalidated the legal basis for the award under French law. - July 19, 2025
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