Philippines Reasserts Claim Over Sabah Amid Continental Shelf Dispute with Malaysia

The Philippines has reignited a decades-old territorial dispute with Malaysia by reasserting its claim to Sabah, also known as North Borneo, in a formal communication to the United Nations. This move comes alongside Manila’s bid to extend its continental shelf in the West Palawan Region under the United Nations Convention on the Law of the Sea (UNCLOS), a submission that has drawn sharp opposition from Kuala Lumpur. The escalating diplomatic row underscores long-standing tensions over sovereignty, historical claims, and maritime rights in the resource-rich South China Sea region.

In a note verbale dated 19 March to the UN Secretary General, the Philippine Permanent Mission to the UN declared that Manila “has never relinquished its sovereignty over North Borneo”. The statement referenced the 1963 Manila Accord, a trilateral agreement between the Philippines, Malaysia, and Indonesia, which stipulated that the inclusion of Sabah in the Federation of Malaysia would not prejudice Manila’s claim. The Philippines reiterated its commitment to pursuing the issue through international law and peaceful means.

Continental Shelf Submission Sparks Friction

The latest diplomatic exchange was triggered by the Philippines’ submission to the UN Commission on the Limits of the Continental Shelf on 14 June 2024. Invoking its rights under UNCLOS, Manila requested recognition of an extended continental shelf in the West Philippine Sea, particularly off the western coast of Palawan. According to UNCLOS, a continental shelf refers to the submerged extension of a coastal state’s land territory, encompassing the seabed and subsoil beyond its territorial sea up to 370 kilometres (200 nautical miles) within its exclusive economic zone.

The Philippine submission argues that the country’s continental margin extends beyond this limit due to “geomorphological continuity” between the landmasses of Palawan and North Borneo and the outer edge of the continental margin in the region. This claim, however, has been met with staunch resistance from Malaysia, which contends that the Philippine projection encroaches on baselines from Sabah—a state Malaysia considers unequivocally part of its territory.

In a note verbale dated 27 June 2024, Malaysia’s Permanent Mission to the UN stated that Kuala Lumpur “categorically rejects” the Philippines’ submission, asserting that it has never recognised Manila’s claim to Sabah. Malaysia urged the UN body not to examine or qualify the Philippine request, further intensifying the dispute over both land and maritime boundaries.

Historical Roots of the Sabah Dispute

The contention over Sabah traces back centuries, rooted in colonial history and competing interpretations of territorial agreements. Historical records cited by the Philippines note that in 1640, Spain—then a colonial power in the region—recognised the independence of the Sultanates of Sulu and Maguindanao under a treaty. In 1704, the Sultan of Brunei reportedly ceded Sabah to the Sultan of Sulu as a reward for assistance in suppressing a revolt.

The narrative becomes murkier in 1878, when the Sultan of Sulu leased Sabah to the British North Borneo Company in exchange for annual payments. Disputes emerged after payments ceased following the death of Sultan Jamalul Kiram II in 1936. The Philippines formally staked its claim in 1962, when the heirs of the Sultan authorised the government to negotiate on their behalf. That year, then-President Diosdado Macapagal filed a formal claim with the United Kingdom, asserting Philippine sovereignty over North Borneo.

The situation grew more complex in 1963, when Malaysia gained independence from Britain, and the British North Borneo Company transferred its rights to the newly formed Federation of Malaysia. While Malaysia continued rental payments in ringgit, the Philippines maintained that the 1963 Manila Accord preserved its right to pursue the claim—a position it upholds to this day.

Violent Clashes and Legal Battles

Tensions over Sabah have not been confined to diplomatic channels. In February 2013, over 200 followers of the late self-proclaimed Sultan of Sulu, Jamalul Kiram III, attempted to reclaim Sabah by occupying Tanduo village in Lahad Datu, a coastal town in Sabah. The standoff with Malaysian security forces turned deadly on 1 March, when a 30-minute shootout left two Malaysian police officers and 12 Filipino rebels dead. A full-scale military operation followed on 5 March, highlighting the potential for violence in this unresolved dispute.

More recently, legal battles have added another layer of complexity. In 2023, a Dutch court dismissed a claim by descendants of the former Sulu Sultanate seeking to enforce a $15-billion award granted by a Paris arbitration court against Malaysia. The Dutch ruling stated that the French decision did not apply in the Netherlands, dealing a blow to the claimants but leaving the broader sovereignty question unresolved.

Geopolitical and Economic Stakes

The Sabah dispute and the overlapping continental shelf claims carry significant geopolitical and economic implications. The West Philippine Sea, part of the broader South China Sea, is a critical maritime zone rich in natural resources, including oil, gas, and fisheries. It is also a vital shipping lane for global trade. Both the Philippines and Malaysia, alongside other regional players, have vested interests in securing control over these waters and the seabed beneath them.

For the Philippines, extending its continental shelf could bolster its maritime rights and access to resources, reinforcing its position in ongoing South China Sea disputes, including those with China. However, Malaysia views the Philippine claim as a direct challenge to its territorial integrity, particularly as Sabah remains an integral part of its federation and a key economic region.

Analysts suggest that if the UN Commission on the Limits of the Continental Shelf were to entertain the Philippines’ submission, it could set a precedent for other maritime boundary disputes in the region. Yet, such a decision remains speculative and unconfirmed, with the potential to further strain bilateral relations between Manila and Kuala Lumpur.

Regional and International Implications

The reassertion of the Sabah claim also raises questions about the role of international law and regional diplomacy in resolving such disputes. The Philippines has consistently emphasised its commitment to the “pacific settlement of disputes” as outlined in the 1963 Manila Accord. However, Malaysia’s firm rejection of the claim indicates limited appetite for negotiation at present.

Beyond bilateral tensions, the issue intersects with broader regional dynamics in Southeast Asia, where overlapping territorial and maritime claims are a recurring source of friction. The Association of Southeast Asian Nations (ASEAN), of which both countries are members, has often advocated for dialogue and consensus-building. Yet, the Sabah dispute remains a thorny issue that tests the bloc’s unity and conflict-resolution mechanisms.

Moreover, the involvement of the United Nations adds an international dimension to the row. While UNCLOS provides a framework for delineating maritime boundaries, it does not address territorial sovereignty disputes like Sabah. This jurisdictional gap means that even if the UN Commission rules on the continental shelf submission, the core issue of Sabah’s ownership may remain unresolved without direct negotiations or third-party mediation.

Public Sentiment and Future Outlook

Public sentiment in both countries reflects deep-seated national pride and historical grievances. In the Philippines, the Sabah claim is often framed as a matter of historical justice, tied to the legacy of the Sulu Sultanate and resistance to colonial legacies. In Malaysia, however, the issue is seen as a non-negotiable aspect of national sovereignty, with Sabah fully integrated into the federation’s political and economic fabric.

As diplomatic exchanges continue, the path forward remains uncertain. Could renewed dialogue under the auspices of ASEAN or the UN yield a breakthrough, or will the dispute persist as a simmering undercurrent in bilateral relations? For now, the Philippines’ dual push for Sabah and an extended continental shelf has reignited a complex debate, with ramifications that extend far beyond the shores of North Borneo.