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MALAYSIA has achieved a decisive legal triumph in the ongoing international dispute over Sabah, with the Paris Court of Appeal fully overturning the US$14.9 billion arbitration award previously issued to claimants purporting to be heirs of the Sulu Sultanate.
The ruling represents a significant affirmation of Malaysia’s sovereignty and independence, as well as a vindication of the country’s persistent legal strategy on the international stage.
Datuk Mohamad Ezri Abdul Wahab, Chairman of the Malaysian Bar Council, described the Paris Court of Appeal’s decision as providing legal clarity and reinforcing the fundamental principle that proper jurisdiction is essential in any arbitration proceeding.
“The decision also demonstrates that international legal mechanisms operate effectively to prevent attempts to act beyond or outside the scope of arbitration processes,” he said.
The award in question had been issued by arbitrator Gonzalo Stampa on 28 February 2022, but the Paris Court of Appeal found that Stampa lacked jurisdiction because no valid arbitration agreement bound Malaysia.
The court also ordered the Sulu claimants to pay €200,000 in costs to Malaysia.
The Special Sulu Secretariat, representing the Malaysian government, confirmed the Paris Court of Appeal’s ruling last Tuesday, with the official judgment received early the following day.\
Prior to this, the court had rejected recognition and enforcement of the Partial Award on 6 June 2023, a decision upheld by the French Supreme Court on 6 November 2024.
Echoing similar sentiments, former Bar Council President Salim Bashir hailed the ruling as both a legal victory and a formal recognition of Malaysia’s sovereignty and independence.
He noted that the judgment vindicated Malaysia’s position, citing the absence of any binding arbitration agreement and the invalidity of Stampa’s appointment, ensuring that the country and its assets remain legally protected from external claims.
“This victory demonstrates that Malaysia and its national assets are now legally free from interference by the Sulu claimants,” he stated.
The ruling continues a series of successes for Malaysia in the dispute, following favourable decisions in courts in Luxembourg, The Hague, France, and Spain. Under the MADANI government led by Prime Minister Datuk Seri Anwar Ibrahim, Malaysia has actively pursued counterclaims against the Sulu heirs, who in March 2019 initiated arbitration proceedings in Spain seeking multi-billion-ringgit compensation over Sabah.
Mohamad Ezri further commended the government and legal teams for their persistent efforts to defend Malaysia’s sovereignty through proper judicial channels.
“The Bar Council recognises the government’s continuous and strategic legal measures in protecting Malaysia’s sovereignty through the correct judicial avenues,” he said, highlighting the importance of methodical and principled legal action in international disputes.
This landmark ruling closes a contentious chapter that had initially raised concerns over potential misuse of international arbitration procedures, reaffirming Malaysia’s legal and diplomatic standing on a critical territorial and sovereignty issue. - December 11, 2025