Malaysia PM vows to protect global assets as sultan heirs claim $15bn award

Malaysia’s Prime Minister Ismail Sabri Yaakob promised legal measures on Tuesday to protect the country’s assets worldwide, local media reported, as heirs to a 19th-century sultan sought to enforce a $15 billion arbitration award via asset seizures, Reuters reports.

The heirs are targeting Malaysian property overseas following the government’s refusal to recognise an arbitration award by a French court in February, which found it had reneged on a 1878 land leasing agreement between a British company and the last sultan of Sulu.

Malaysia, which took on the deal after independence from Britain and made nominal annual payments to the claimants until 2013, has obtained a stay on the case pending appeal.

The award remains enforceable outside France under a UN convention on arbitration, the claimants’ lawyers say.

Ismail Sabri said the government would use legal channels to defend its global assets, including those of state-linked companies.

“I give my assurance that we will not compromise or budge even an inch in defending the country’s rights and sovereignty,” state news agency Bernama quoted Ismail Sabri as saying.

Last week, two units of Malaysian state oil firm Petronas PETR.UL were seized in Luxembourg as part of efforts to enforce the award.

Petronas has described the seizure as “baseless” and said it was taking steps to protect its assets globally.