10-11-2023 (KUALA LUMPUR) Malaysia has confirmed that the descendants of a former sultan have withdrawn their claims on three Malaysian-owned diplomatic properties in Paris as part of an ongoing arbitration dispute worth US$15 billion (S$20 billion) between the two parties.
According to a statement issued by Malaysia’s law ministry late on Thursday, an enforcement judge in Paris recorded the claimants’ withdrawal from the proceedings they had initiated to seize the diplomatic buildings. Representatives for the heirs were not immediately available for comment.
This dispute traces its roots to a long-standing conflict over a colonial-era land deal, which resulted in Filipino heirs of the last Sultan of Sulu winning a substantial US$14.9 billion award in a French arbitration court last year. In response, they sought to claim Malaysian-owned assets.
However, in June, a Paris court ruled in favor of the Malaysian government, rejecting the enforcement of a partial award.
The law ministry’s statement further noted that the enforcement judge nullified a previous order that authorized the registration of a statutory mortgage on the three buildings. Additionally, the heirs of the sultan were instructed to pay €15,000 (S$22,000) to Malaysia as costs, in addition to the 100,000 euros imposed by a Paris Court of Appeal earlier this year.
The law ministry emphasized, “The government of Malaysia is confident that the ultimate annulment of the purported final award by the Paris Court of Appeal is only a matter of time, and is making every effort to secure that result as quickly as possible.”
