Khairul Dzaimee Daud - Malaysia’s Director-General in the Law Ministry - declared Fuad Kiram a terrorist. Image Source: The Sun Daily

Evidence Under Section 66B

The Malaysian government’s decision to label Fuad Kiram a terrorist is grounded in a multifaceted analysis of his affiliations, actions, and sustained involvement in activities that challenge the sovereignty of Malaysia. His designation under Section 66B of the Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act 2001 reflects the convergence of evidence cited by Malaysian authorities linking him to terrorist operations.

Section 66B authorizes the government to designate individuals or entities as terrorists based on involvement in financing terrorism, laundering funds for unlawful activities, or materially supporting organizations or acts that threaten national security. In Fuad Kiram’s case, statements from Malaysian and allied intelligence services reference financial transfers routed through charitable fronts and offshore accounts, believed to have been used to arm Royal Security Forces (RSF) militants and sustain logistical efforts. The RSF is a paramilitary group identified by Malaysian security assessments as directly linked to violent insurgent activity and acts of terrorism, including the 2013 Lahad Datu incursion.

The Lahad Datu Incursion and Fuad Kiram’s Involvement

The Lahad Datu incident was a meticulously planned armed intrusion into Malaysian territory by more than two hundred militants who identified themselves as the Royal Security Forces of the Sultanate of Sulu and North Borneo. Under the leadership of Jamalul Kiram III, a self-proclaimed Sultan of Sulu, they attempted to assert an ancestral claim over Sabah. The resulting standoff escalated into violent clashes, leaving at least sixty-eight militants, ten Malaysian security personnel, and several civilians dead. The Malaysian military launched a full-scale operation, neutralizing the militants and reasserting control over Sabah.

Fuad Kiram’s involvement is complex and multifaceted. Far from just being a symbolic figure, he has been referenced in Malaysian government statements as connected to key figures who planned and offered ideological support for the incursion, with the Malaysian Home Ministry describing the Kiram family as posing an “ongoing security threat” to national sovereignty.

Diplomatic cables released by Wikileaks confirm that on March 18, 2013—just one week before the official end of the standoff—members of the Moro National Liberation Front (MNLF), including key militant leader Habier Malik, formally recognized Fuad Kiram as the legitimate Sultan of Sulu and North Borneo. This recognition took place at Malik's camp in Bitanag, identified as a stronghold of militant operations.

While Fuad Kiram later called for an end to the fighting, this has been interpreted as a strategic move made only after the incursion failed. The relationship between Fuad Kiram and Habier Malik suggests coordination; Malik, a leader within the MNLF, was instrumental in providing militant manpower and operational support to the incursion. The MNLF, as noted in security and regional reports, has been linked to violent activities and insurgency, with factions supporting armed actions such as the Lahad Datu standoff. Their recognition of Fuad Kiram as legitimate sultan, issued from a known militant camp, demonstrates the alignment between militant networks and Kiram’s claims against Malaysia.

The relationship between Fuad Kiram and militant leader Habier Malik suggests coordination.

International Reaction

The international community’s response to the incursion and its participants was swift. The Philippine government, despite historical ties to the Sulu Sultanate, condemned the incursion. President Benigno Aquino III stated, “You are causing problems for the entire country. The path you have taken is wrong, and we have exhausted all avenues for a peaceful resolution.” The Philippine military actively pursued Habier Malik and other MNLF militants associated with the incursion. In response to Malik’s actions, the Armed Forces of the Philippines offered a 1-million peso reward for his capture, with Presidential Advisor on the Peace Process Secretary Jesus Dureza describing him as a “common criminal.” Military operations against Malik continued with the full backing of Malacanang.

Across the ASEAN community, the incursion was viewed as a violation of regional norms. The Indonesian Foreign Ministry declared, “Indonesia stands by Malaysia in upholding sovereignty and calls for any disputes to be settled through peaceful dialogue.” Brunei echoed these sentiments, warning that the incident could undermine regional stability.

Malaysia’s allies, including the United States, the United Kingdom, and Australia, also condemned the incursion. U.S. Ambassador Joseph Yun emphasized, “The United States condemns in the strongest terms any act of aggression threatening the territorial integrity of Malaysia. We stand with our Malaysian partners in their efforts to secure peace and stability.” Statements from British and Australian diplomats reaffirmed international support for Malaysia’s sovereignty and included commitments for continued intelligence-sharing and cooperation.

“The United States condemns in the strongest terms any act of aggression threatening the territorial integrity of Malaysia.”

Further Efforts against the State

Fuad Kiram’s ongoing efforts to pursue a US$14.9 billion arbitration claim against Malaysia have drawn further scrutiny. The involvement of a designated terrorist in leading such a claim raises serious questions about its intentions. While there is no publicly disclosed evidence linking the original funding of the arbitration claim to illicit sources, speculative concern exists that fundraising methods used in prior destabilizing efforts could have reappeared in this legal campaign. This possibility continues to challenge the integrity of the Sulu heirs’ case and reinforces Malaysia’s opposition.

Fuad Kiram’s record of terrorism financing, militant affiliations, and destabilizing legal challenges reflects a pattern of conduct that has been condemned by international authorities, regional governments, and allied security agencies.

Ultimately, Fuad Kiram’s prominent role in this ongoing dispute reinforces Malaysia’s classification of Kiram as well as its stance on protecting its national sovereignty and territorial integrity.

REFERENCES

BBC News. (2013, March 23). ASEAN voices support for Malaysia following Lahad Datu incident. BBC News. http://www.bbc.com/news/asia

Reuters. (2013, March 20). Malaysia reaffirms sovereignty after Lahad Datu incursion. Reuters Archive. http://www.reuters.com/article/malaysia-lahad-datu

Reuters. (2013, March 22). International community condemns Lahad Datu incursion. Reuters Archive. http://www.reuters.com/article/lahad-datu-international

Wikileaks. (2013, March 18). Cable on Sulu incursion and Fuad Kiram’s recognition [Diplomatic cables]. https://wikileaks.org/plusd/cables/07MANILA1231_a.html