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Economy & Resources

Paris Court Ends $15 Billion Sulu Arbitration Saga, Rules in Favor of Malaysia

Published on Dec 11, 2025

On December 9, the Paris Court of Appeal issued its final decision in the long-running $15 billion arbitration case brought against Malaysia by eight Filipino claimants claiming to be descendants of the former Sultanate of Sulu. The court ruled in favor of Malaysia.

 

The claim previously moved through courts in London, Madrid, Sabah, Luxembourg, The Hague, and Washington. Every single court ultimately rejected the case for lacking legal basis, as the Paris ruling confirmed.

 

What's the Case About?

The case revolves around Sabah, which is internationally recognized as Malaysian territory. The dispute is linked to small annual payment tied to an 1878 agreement. Malaysia paid the sum for decades until 2013, when the country was rocked by the deadly Lahad Datu intrusion, during which a group of armed men led by Sulu descendants attacked Sabah and tried to claim it as their own.

 

Following the incident, which resulted in civilian deaths, Malaysia halted payments.

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