A long-running dispute between the heirs of the Sultan of Sulu and Malaysia has become one of the biggest legal battles in Southeast Asia. The dispute centers on Sabah, a Malaysian state, and an old agreement signed in 1878.
Today, self-proclaimed Sulu heirs from the Philippines are demanding almost $15 billion from Malaysia, based on an arbitration decision that many courts in Europe have already rejected. A final ruling is expected on December 9, 2025.
This issue now affects Philippine sovereignty, its ties with Malaysia, and even regional stability, even though the original agreement was signed more than 140 years ago.
The 1878 Deal
The roots of the Sabah dispute go back to 1878, when the Sultan of Sulu signed an agreement with two European traders. The deal gave them control over parts of North Borneo. In return, the Sultan was to receive a small annual payment of about $1,600 for access to the land and its natural resources.
Over the years,
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