Malaysia has secured a decisive and far-reaching legal victory after the Paris Court of Appeal fully annulled the controversial “Final Award” issued in favour of individuals claiming to be descendants of the historical Sulu Sultanate. The ruling, announced to the Malaysian government on December 9 and confirmed in detail this morning, has been hailed as a turning point in the long-running dispute that has threatened Malaysia’s sovereignty over Sabah.
Minister in the Prime Minister’s Department (Law and Institutional Reform), Datuk Seri Azalina Othman Said, described the judgment as not merely a legal triumph but a powerful affirmation of Malaysia’s dignity, sovereign rights and the rule of law. She emphasised that the outcome carries profound meaning for Malaysians, particularly the people of Sabah, who were directly implicated by the claim.
Azalina also extended her appreciation to Prime Minister Datuk Seri Anwar Ibrahim, members of the Madani Government, and the extensive team of professionals and agencies involved in the defence effort—including the Attorney-General’s Chambers (AGC), Wisma Putra, the Legal Affairs Division (BHEUU), and several departments under the Prime Minister’s Office. She noted that their coordinated work through the Special Secretariat War Room on the Sulu Case showcased the government’s commitment to protecting national interests through lawful, principled means.
The Paris Court’s decision concluded that arbitrator Gonzalo Stampa had no legal authority to issue the “Final Award” on February 28, 2022, as there was no valid arbitration agreement binding Malaysia. The appointment of Stampa had already been revoked by a Spanish court, yet he proceeded to conduct the arbitration process and issued a staggering US$14.9 billion award in favour of the claimants.
In addition to nullifying the award, the Court ordered the Sulu claimants to pay €200,000 (US$232,734) to Malaysia to cover legal costs. This ruling reinforces earlier decisions by French courts, including the Paris Court of Appeal’s rejection of the “Partial Award” in June 2023 and the French Court of Cassation’s decision in November 2024 upholding that rejection.
The dispute originated when eight Philippine nationals began arbitration proceedings in Spain in 2019, asserting that they were heirs of the now-defunct Sulu Sultanate and seeking billions in compensation for Sabah. Malaysia consistently rejected the claim, arguing that the arbitration was illegitimate and that Sabah’s sovereignty is indisputable.
With the Paris Court’s annulment, Azalina stressed that the ruling should be considered a significant milestone in Malaysia’s defence of its territorial integrity. She also reiterated that the government remains fully prepared to respond to any future attempts to revive the claim, stating that legal avenues remain open should new developments emerge.