The North Borneo Dispute – A History of Tension5 min read

North Borneo, Sabah, Dispute
The North Borneo dispute is the territorial dispute between the Federation of Malaysia and the Republic of the Philippines over much of the eastern part of the state of Sabah

Sabah, formerly known as North Borneo, occupying the northern half of the island of Borneo has long been at the centre of bilateral relation between Malaysia and the Philippines. Even though the Philippines claim has lasted since the early 1960s, Sabah is still under the sovereignty of Malaysia today.

The claim has recently resurfaced following the Philippines administration proposal of shifting to a federal system government. In drafting the proposal, one of the members of the executive committee included Sabah to be part of Philippines which activated the North Borneo dispute.

The Philippines allegations of being the landlord of North Borneo is based on the past territorial claims by the Sultans of Sulu. In response to the recent claims by the Philippines, an official from the Malaysian government dismissed the allegations and issued a warning that such statements could affect diplomatic relations between the two states. The official further reiterated that Malaysia does not recognize any claims by any party to Sabah. In order to understand the nature of the claims better, it is essential to look into the history of the dispute. So, let’s look at the origin of contention.

History of The Territorial Claims To Sabah

The origin of the dispute dates back to an agreement signed by the Sultan – who was in control of Sabah then – and the British North Borneo Co. The contract allowed the British company to settle in the eastern half of Sabah for the unforeseeable future as long as they continued paying rent to the Sultanate. Originally, there were two main sultanates in the area; Brunei and Sulu. In 1658, the Sultanate of Sulu was given Sabah in appreciation of the help by his troops to Brunei in suppressing an uprising.

In 1761, the Sultanate of Sulu went into a contract allowing the British East India Company to develop a trading center in Balenkong Island. This was later followed by another agreement in 1878 by the Sultans to lease his territories in Northern Borneo for compensation in form of rent from the British North Borneo Co. As the WW2 ended in 1945, Sabah was passed over to the British government and was made a colony. After 1946, the British passed the annual payment of lease to the Malaysian government, and till today, the payment still continues with respect to the agreement. Sabah later gained independence in 1963 through a referendum with many votes in favour of the move to join the Federation of Malaysia.



However, the Philippines have maintained their claim on the basis that the agreement signed in 1878 constituted a lease and not a sale of land as regarded by Malaysia and the British. Upon transfer of Sabah from the North Borneo Chartered Company to the Crown following the 1946 North Borneo Cession Order, Francis Burton Harrison , the ex US Governor General who held the position of a foreign adviser to the newly constituted Philippines Republic termed the transfer as illegal on the grounds that other interested parties where not included in the agreement. In 1963, Diosdado Macapagal, the then Philippines President declined to acknowledge the Federation of Malaysia as a result of the inclusion of Sabah.

The dispute was followed by the Manila Accord, a negotiation that included the Philippines, Indonesia and Malaysia signed on 31 July 1963 to settle the Philippines claims to Sabah peacefully. However, the Philippines still insist that their claim and other negotiations, in particular, the Manila accord established and preserved its right to pursue the claim regardless of the establishment of the Federation of Malaysia. The Sulu Sultanate as used Manila Accord several times in a bid to push the Filipino government to proclaim ownership of the northern part of Sabah since the Sultanate still greatly influences the Sulu residents. As a matter of fact, even president Duterte himself promised to pursue the claim during his presidential campaign in 2016 that won him massive political support from the residents.

Return of Tension

The issue of Sabah has resurfaced yet again this time marked by violent standoff featuring the Malaysian troops and followers of the sultan of Sulu in Tanduao village in the district of Lahad Datu. Similar encounters where also witnessed in Simunul village in Semporna. The conflict has raised worries that the violence could spread to other regions of Northern Borneo. Speculations have been raised that the standoff was caused by the parties who are against the Malaysian-brokered peace agreement between the Moro Islamic liberation and the Filipino government due to the timing involved in staging the drama. In a bid to boost their nationalist credentials, some candidates vying for senatorial posts in the Philippines government are using the incident to influence Manila to revive its claims on Sabah. But, following Malaysia’s participation in the peace agreement with the MLF, the Aquino government might not pursue the demands with great enthusiasm.

Impacts of the Claims on Diplomatic Relations

The developments of the dispute are likely to strain bilateral relations between the Philippines and Malaysia, just like in the past. For instance, during the 1960s, the two countries cut their diplomatic ties twice due to this disagreement. This makes the issue a potential international crisis in the sense that if the Malaysian government decides to initiate a crackdown and ignite the unrest from Filipino locals in Sabah, then a domestic crisis could be created in Mindanao if it is seen that the Duterte administration is conceding or weakening its position.

In this post-colonial era, the people’s right to self-determination ought to be made a priority in such land disputes affecting a large percentage of the population. In this case, the residents of Sabah for many years have established themselves under the Malaysian government and changing their citizenship overnight is most likely negatively impact their spirit of patriotism.

On the other hand, the Philippine has the right to defend its claim to Sabah in a peaceful manner that could result in the issue being tabled in the International Court of Justice. If this happens, the relations between these two countries is bound to deteriorate further.

It’s in hope that wisdom and diplomacy will prevail with the Philippines and Malaysia both ending in a peaceful negotiation without going through any fights.

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