The Sabah Dispute: A Visual Image Source: The Economist. (2013). https://www.economist.com/asia/2013/03/09/intrusion-confusion

Despite continuous Malaysian administration since it joined the Federation of Malaysia in 1963, the Philippines has maintained a longstanding historical claim over the territory, which it refers to as North Borneo. Most recently, on March 19, 2025, the Philippine government reaffirmed this claim through a formal diplomatic communication submitted to the United Nations Secretary-General, highlighting that this decades-old dispute remains unresolved and diplomatically active.

Further complicating matters, descendants of the defunct Sultanate of Sulu have independently pursued sovereignty claims over Sabah for decades through various international legal channels. Most recently, on March 24, 2025, the Sultanate’s heirs formally announced they no longer recognize any previously granted sovereignty to the Philippines, asserting their separate claim directly against Malaysia.

The Philippine Claim to Sabah

The Philippines bases its claim primarily on historical treaties and colonial-era agreements, emphasizing the Manila Accord of 1963, which the Philippines interprets as preserving their claim despite Sabah's incorporation into Malaysia.

Central to the Philippine argument is the contentious 1878 agreement between the Sultan of Sulu and the British North Borneo Company, consistently interpreted by the Philippines—and separately by the Sultanate—as a lease, not a transfer of full sovereignty. President Diosdado Macapagal formally asserted this position in 1962, stating the British administration did not negate underlying sovereign rights.

Efforts to resolve the dispute through international institutions have repeatedly failed. In 1968, President Ferdinand Marcos's administration passed legislation (Republic Act 5446) reaffirming the claim by defining territorial baselines inclusive of North Borneo. That same year, Philippine diplomats sought unsuccessfully to place the issue onto the agenda of the 23rd Session of the UN General Assembly, encountering staunch opposition from Malaysia. Without mutual consent, jurisdiction at the International Court of Justice (ICJ) could not be established, effectively halting further diplomatic progress.

Renewed Philippine interest in Sabah appears linked to broader geopolitical concerns. In June 2024, the Philippines submitted a request to the United Nations to extend its continental shelf by 200 nautical miles into the West Philippine Sea—a move firmly rejected by Malaysia, intensifying regional tensions and reigniting territorial disputes over Sabah.

Given this prolonged diplomatic stalemate, it is expected that without Malaysia’s consent, neither the Philippine initiative nor the Sultanate’s separate UN appeals will overcome the impasse. This latest episode not only highlights current regional frictions but also reinforces the ongoing deadlock in resolving such disputes.

Given this prolonged diplomatic stalemate, it is expected that without Malaysia’s consent, neither the Philippine initiative nor the Sultanate’s separate UN appeals will overcome the impasse.

The Sultanate of Sulu's Claim to Sabah

The Sultanate of Sulu’s historical claim to Sabah dates to 1704 when the territory was granted by the Sultan of Brunei in recognition of military assistance. Like the Philippines, central to their contemporary claim is the contentious 1878 agreement, interpreted by the Sultanate as a temporary lease—a stance strongly contested by Malaysia.

The Sultanate has actively pursued international recognition, notably petitioning the United Nations in 2004. To bolster their petition, they have been seeking the attention of the United States, citing the 1915 Carpenter-Kiram Treaty, a treaty acknowledging the Sultanate by the U.S. colonial administration.

Despite these efforts, the Sultanate's legitimacy has been significantly undermined by concurrent claims from the Philippines, an internationally recognized sovereign state. On March 24, 2025, in direct response to the Philippine note to the UN, descendants of the Sultanate formally revoked any sovereignty previously granted to the Philippines. They publicly signaled their intention to independently assert their claim directly against Malaysia.

Historically, the Sultanate received regular payments under the 1878 agreement; however, with the cessation of these payments, there is now a renewed financial incentive to reclaim the region. Notably, the purported heirs to the Sultanate’s throne reside in the Philippines rather than in the contested Sabah area, prompting questions about the validity of their claims and governing intentions. Moreover, recent efforts to enforce a multi-billion-dollar arbitration award against Malaysia in European courts underscore the economic motivations behind these actions. Such developments suggest that descendants of the Sultanate may be capitalizing on historical ambiguities for financial gain rather than pursuing authentic administrative authority.

The Sultanate's legitimacy has been significantly undermined by concurrent claims from the Philippines.

Malaysia's Claim to Sabah

Meanwhile, Malaysia’s sovereignty over Sabah has been firmly established through historical treaties, continuous administrative governance, and solid international legal foundations. Malaysia maintains that the North Borneo Company had ceded territorial rights of Sabah to Britain in 1946, thereby making it a British colony prior to its inclusion into Malaysia. Sabah then officially joined Malaysia in 1963 under the Malaysia Agreement, ratified by the United Kingdom, Malaya, North Borneo (Sabah), Sarawak, and Singapore.

Further legitimacy was provided by United Nations-sanctioned reports in 1962 and 1963 respectively, assessing local willingness to join Malaysia. The results of the Cobbold Commission (1962) demonstrated the Sabahians overwhelming support for Malaysia. Initially, both the Philippines and Indonesia rejected this self-determination outcome. However, in signing the Manila Accord, Philippine President Diosdado Macapagal, Indonesian President Sukarno, and Malayan Prime Minister Tunku Abdul Rahman agreed to respect the wishes of North Borneo residents if verified by a subsequent UN commission.

On 14 September 1963, UN Secretary-General U Thant presented the United Nations Malaysia Mission report, stating clearly that “the majority of the peoples of Sabah (North Borneo) and of Sarawak, have given serious and thoughtful consideration to their future…there is no doubt about the wishes of a sizeable majority of the peoples of these territories to join in the Federation of Malaysia.”

Since integration, Malaysia has effectively administered Sabah, significantly boosting its economic output. Sabah contributes around 6% of Malaysia's total GDP, supported by robust infrastructural development including extensive road networks, ports, airports, and power plants, with further tourism development plans underway.

Politically, Sabah holds 25 seats in the Malaysian Parliament, reflecting strong federal representation and considerable local autonomy. Public services have notably improved, with literacy rates around 95% and significantly expanded healthcare access.

In stark contrast, the neighboring Sulu region of the Philippines continues to face considerable economic underdevelopment. Poverty rates frequently exceed 50%, unemployment remains high, and infrastructure—such as electricity, water supply, and roads—is limited. Healthcare facilities are sparse, affecting access to medical services. Educational outcomes in Sulu also lag significantly behind national averages, with literacy rates estimated around 80%, substantially lower than Sabah’s. This disparity underscores tangible governance benefits under Malaysian administration.

International law also strongly supports Malaysia’s claim through principles of effective occupation and territorial integrity, discouraging border changes without mutual consent. ASEAN explicitly respects territorial integrity among member states, including Malaysia's sovereignty over Sabah. The Commonwealth consistently recognizes Malaysia's borders, and the UN repeatedly affirms Sabah's status as Malaysian territory, reflected notably in UN General Assembly Resolution 1541, supporting territorial integrity and self-determination based on majority consent. This widespread international acknowledgment effectively renders competing claims obsolete.

…”There is no doubt about the wishes of a sizable majority of the peoples of these territories to join in the Federation of Malaysia.” (1963)

Regional and International Implications

Recent Philippine diplomatic actions complicate regional relations and significantly undermine the Sultanate of Sulu’s efforts to attain international credibility or financial restitution. Given steadfast opposition from Malaysia and lack of international backing, particularly from influential allies like the United States, recognition of the Sultanate’s claims remains improbable.

Ultimately, both the Philippine and Sultanate claims are widely regarded internationally as pursuits lacking contemporary legal validity and practical relevance. Both parties could benefit by prioritizing internal development and addressing domestic challenges rather than focusing on external territorial claims.

The international community remains firmly supportive of Malaysia’s sovereignty over Sabah, viewing alternative claims as historical relics without contemporary legal standing or recognition. Consequently, continued pursuits by the Philippines and Sultanate descendants are unlikely to alter the diplomatic status quo, consistent with historical precedents established since the 1960s.

REFERENCES

Asia News Network. (2025, March 22). Philippines revives Sabah claim in note to United Nations. https://asianews.network/philippines-revives-sabah-claim-in-note-to-united-nations/

Cobbold Commission. (1962). Report of the Commission of Enquiry, North Borneo and Sarawak. https://web.archive.org/web/20190916093352/http://lib.perdana.org.my/PLF/Digital_Content/PLF/000001/UH3_126045.pdf

Echiminada, P. (2025, March 24). Sultanate of Sulu declares revocation of Sabah sovereignty transfer to PH. Daily Tribune. https://tribune.net.ph/2025/03/24/sultanate-of-sulu-declares-revocation-of-sabah-sovereignty-transfer-to-ph

Fazaniza, E. (2022, December 15). Health Ministry, Sabah and Sarawak govts to lead on improvements, access to facilities: Deputy Minister. The Sun. https://thesun.my/malaysia-news/health-ministry-sabah-and-swak-govts-to-lead-on-improvements-access-to-facilities-deputy-minister-OE10363827

Government of Malaysia. (1963). The Malaysia Agreement. http://www.agc.gov.my/agcportal/uploads/files/Publications/LOM/EN/MA63.pdf

Morales, N. J., & Lema, K. (2024, June 15). Philippines files U.N. claim for extended continental shelf in South China Sea. Reuters. https://www.reuters.com/world/asia-pacific/philippines-files-un-claim-extended-continental-shelf-south-china-sea-2024-06-15/

Official Gazette of the Philippines. (1963, September 14). United Nations Malaysia Mission Report: Final Conclusions of the Secretary-General. https://www.officialgazette.gov.ph/1963/09/14/united-nations-malaysia-mission-report-final-conclusions-of-the-secretary-general-14-september-1963/

Philippine Statistics Authority. (n.d.). Philippine Statistics Authority Official Website. https://psa.gov.ph/

The Borneo Post. (2017, May 5). Malaysia’s literacy rate almost 95 percent. https://www.theborneopost.com/2017/05/05/malaysias-literacy-rate-almost-95-per-cent/

United Nations. (1960). Yearbook of the United Nations 1960 (Part 1, Section 3, Chapter 4). https://web.archive.org/web/20120320074502/http://unyearbook.un.org/1960YUN/1960_P1_SEC3_CH4.pdf

United Nations. (1963). Yearbook of the United Nations 1963 (Part 1, Section 1, Chapter 3). https://web.archive.org/web/20111111232635/http://unyearbook.un.org/1963YUN/1963_P1_SEC1_CH3.pdf

United Nations High Commissioner for Refugees. (2022, December). Mindanao Protection Project: Sulu and Jolo. https://www.protectionclusterphilippines.org/wp-content/uploads/2022/12/UNHCR_MPP_Sulu_Jolo.pdf