Malaysia will ride out Sulu controversy

Significance

Part of the historical sultanate covered a large portion of what is today the eastern Malaysian state of Sabah. The Philippines has a long-standing claim to Sabah, derived from the sultanate.

Impacts

• Although the controversy is playing out in European courts, it is unlikely to have an adverse impact on EU-Malaysia relations.
• Malaysia will step up efforts to highlight its pushback against the Sulu heirs in a bid to shore up investor sentiment.
• Even if the award is struck down in France, courts in other jurisdictions may continue to recognise it.