A state immunity act will shield Malaysia against foreign claims, says Azalina

PETALING JAYA: A state immunity act will shield Malaysia against claims from foreign states, says Datuk Seri Azalina Othman Said.

The Minister in the Prime Minister Department (Law and Institutional Reforms) talked about exploring a domestic state immunity act to be legislated for the benefit of the country.

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I am of the view that with this incident, and maybe... with more claims to look into, (Malaysia should) consider... a state immunity act.

"We must consider this strategy to prepare (against) certain claims," she said in her keynote address at the International Arbitration Colloquium 2023 here on Tuesday (May 9).

She added that the Sulu case presented a complex dispute which involves a myriad of fundamental issues affecting the arbitration community and stakeholders, as well sovereign states.

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State immunity, or also known as sovereign immunity, is a legal doctrine where a sovereign state cannot be sued before the court of another sovereign state without its unequivocal consent.

She said the purported arbitration proceedings commenced by the so-called Sulu heirs perfectly illustrated a grave violation and abuse of the globally-respected arbitration mechanism and processes.

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"There has never been any form of arbitration agreement concluded between the original parties to the 1878 Agreement and the 1903 Confirmation of Cession as well as between the Sulu sultanate and Malaysia.

"It (follows) that the subsequent issuance of the 'final award' dated Feb 28 last year by Dr Gonzalo Stampa within the purported arbitration proceeding commenced by the Sulu claimants is invalid and unenforceable on Malaysia," she said.