Law and institutional reform minister Azalina Othman Said says Malaysia is prepared to see the Sulu heirs in the Paris Court of Appeal, July 7, 2025. Image Source: Bernama

On July 7, 2025, the Paris Court of Appeal will hear Malaysia’s challenge to a controversial US$14.9 billion arbitration award. The case represents a significant moment in a dispute that has evolved into an international legal and diplomatic conflict.

Unlike earlier hearings that focused primarily on jurisdictional and procedural matters, this session will consider the legal validity of the 2022 arbitration ruling issued by Spanish arbitrator Gonzalo Stampa. His appointment had already been nullified by Spanish courts at the time of the award. Malaysia argues that the arbitration was not only invalid but also exploited legal frameworks in an attempt to coerce a sovereign nation into unjustifiable compensation.

Malaysia argues that the arbitration was not only invalid but also exploited legal frameworks in an attempt to coerce a sovereign nation into unjustifiable compensation.

The Significance of the Hearing

Malaysia has successfully blocked enforcement of the award in several jurisdictions. Key victories include the 2024 annulment of enforcement by the French Court of Cassation, the Dutch Supreme Court’s rejection of the claim, and the 2023 conviction of Stampa by a French court for contempt. The Spanish Constitutional Court also upheld the invalidation of his appointment. However, this will be the first time a French court hears the full case on its merits, with the power to uphold, amend, or annul the award.

Datuk Seri Azalina Othman Said, Minister in the Prime Minister’s Department (Law and Institutional Reform), described the hearing as “a critical opportunity for the French judiciary to recognize the legal and factual flaws” in what she has consistently framed as a politically motivated and unlawful process. “We will not allow any party—local or foreign—to misuse legal processes to challenge our sovereignty,” she said.

Public Diplomacy and Legal Reform

Malaysia has also engaged the international public through a targeted communication strategy. During a diplomatic visit to Brussels in February 2024, Azalina introduced the government’s e-book, Sulu Fraud vs Malaysia’s Truth. The publication provides context on the origins of the Sulu claim, highlights Malaysia’s legal responses, and scrutinizes the role of litigation funders such as Therium. Azalina stated the book offers “a glimpse of the abuses and injustices to the detriment of all Malaysians,” referencing both the legal and reputational impact of the arbitration.

The e-book aims to promote global awareness and prompt reforms in arbitration and litigation funding practices. Azalina has argued that the case sets a dangerous precedent by allowing vague historical grievances to be reinterpreted as actionable legal claims. The Sulu claimants, lacking both a formal mandate and credible legal footing, have used obscure legal pathways and external financial backing in what Malaysia regards as a strategic and self-serving campaign to undermine national sovereignty.

Great Expectations

The Paris Court of Appeal is expected to hold a single-day hearing, with a written judgment issued weeks or months afterward. The court could fully annul the arbitration award, partially reduce the damages, or uphold the ruling—triggering further appeals, possibly to the French Court of Cassation.

Azalina reaffirmed Malaysia’s position, stating the government would exhaust “all efforts, rights, and available resources” to defend national sovereignty and end what she has called a “baseless fraud case by the Sulu group.”

Malaysia appears to be on strong legal footing, citing the series of court rulings in its favor. Azalina reaffirmed Malaysia’s position, stating the government would exhaust “all efforts, rights, and available resources” to defend national sovereignty and end what she has called a “baseless fraud case by the Sulu group.”

Global Implications

Malaysia views the case as a broader challenge to international legal norms. Azalina has called for stronger global oversight of third-party litigation funding and greater accountability in arbitration. She said the Sulu proceedings “challenged the limits of Malaysia’s sovereign immunity,” revealing how external actors can use private legal processes to seek compensation from states—without democratic accountability or respect for international law.

As the July hearing approaches, Malaysia continues to coordinate legal, diplomatic, and public messaging efforts. While the outcome remains to be seen, Malaysia’s position is firm: the rule of law must not be distorted to serve the ambitions of unsubstantiated claimants and their financial backers.

REFERENCES

Azalina: Sulu claim heads to Paris court July 7 as Malaysia fights US$14.9b arbitration ruling. (2025, April 30). Malay Mail. https://www.malaymail.com/news/malaysia/2025/04/30/azalina-sulu-claim-heads-to-paris-court-july-7-as-malaysia-fights-us149b-arbitration-ruling/175027

July 7 hearing for Sulu claim case in Paris appeals court. (2025, April 30). Free Malaysia Today. https://www.freemalaysiatoday.com/category/nation/2025/04/30/july-7-hearing-for-sulu-claim-case-in-paris-appeals-court/

Late sultan's heirs fail in bid to challenge French ruling on Malaysia dispute. (2024, November 6). Reuters. https://www.reuters.com/world/sultans-heirs-fail-with-bid-challenge-french-ruling-dispute-with-malaysia-2024-11-06/

Othman Said, A. (2024, February 12). Sulu fraud vs Malaysia’s truth [E-book]. Government of Malaysia. https://www.malaymail.com/news/malaysia/2024/02/12/azalina-launches-sulu-fraud-vs-malaysias-truth-e-book/117702

Sulu claim case to be heard in Paris appeals court on July 7, says Azalina. (2025, April 30). The Star. https://www.thestar.com.my/news/nation/2025/04/30/sulu-claim-case-to-be-heard-in-paris-appeals-court-on-july-7-says-azalina