KOTA KINABALU – The state immunity bill, legislation to ensure the sovereignty of Malaysian states are protected, is expected to be tabled in the upcoming parliamentary session in October.
Minister in the Prime Minister’s Department Azalina Othman Said (Law and Institutional Reforms) said the bill is currently being worked on at the policy stage, adding that the Madani government is committed to table the bill in the upcoming session.
“In the near future, the Madani government will legislate a State Immunity Act with the purpose of codifying the principle of state immunity to reflect Malaysia’s efforts to ensure the sovereignty of the (Malaysian) states are protected, in the event of a similar frivolous claim is brought against those states before the courts of Malaysia.
“This law reflects the general principles of international law on sovereign immunity, including effective service on foreign states, to uphold the rights and interests of parties concerned, safeguard the sovereignty of states and to preserve and promote friendly relations with other states,” she said.
“With this, it is hoped that reciprocal treatment will be accorded to Malaysia in the event Malaysia is brought to the courts of a foreign state in the future.”
She said this in her keynote address at the International Arbitration Colloquium 2023 themed “State Sovereignty and Immunity in Commercial Arbitration” at the Sabah International Convention Centre here today.
Azalina was speaking through a livestreamed feed as she is currently in Tokyo.
The proposed State Immunity Act comes in view of the legal case pursued by the alleged heirs of the Sulu sultanate to seek compensation for land in Sabah, which was purportedly leased by their ancestors to a British trading company in 1878.
Towards this end, Azalina said the Malaysian government had been consistent in raising timely objections against the alleged Sulu sultanate heirs in their “blatant attempt in forum shopping.”
“This frivolous case financed by an international litigation funder, Therium, has raised several alarming concerns specifically in respect of the exigency to uphold ethical conduct, integrity, professionalism, and good practices by arbitrators which are the cornerstone of any legitimate arbitration.
“It is fundamental to preserve the confidence of any parties who choose arbitration to settle their dispute, failing which, could cause the whole arbitration system to be undermined,” she said. – The Vibes, July 4, 2023
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