LONDON, 25 SEPTEMBER: The London International Arbitration Colloquium organised by the Legal Affairs Division of the Prime Minister’s Department and its collaborating partners on Monday brought together legal and industry experts in discussing and probing the parameters of international arbitration, especially cases involving sovereignity of states like the recent Sulu case involving Malaysia.
Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said in a statement said that the conference had examined the core issues that emerged from the high-profile multi-billion dollar "Sulu case", in which Malaysia recently secured significant judgements from the Paris Court of Appeal and The Hague Court of Appeal.
She said, the day’s event featured a series of panel discussions on jurisdictional challenges in investment arbitration, the impact of investment claims on states and their sovereignty and territorial integrity and the role of third-party funding in access to justice.
“It is in Malaysia's interest and longstanding policy to uphold the sanctity of international law and international commercial arbitration. The Sulu case had been discussed during the conference on the role of third-party litigation funders in pursuing claims against sovereign states," she said.
The colloquium had brought together the collective knowledge and experience of its event partners to deliver an in-depth, academic assessment of the impact of the Sulu case and the future of international arbitration involving foreign investors and sovereign states.
alaysia does not recognise and will not entertain any frivolous claims made by any party including the purported heirs of Sulu Sultan on Sabah, said Foreign Minister Datuk Seri Dr Zambry Abd Kadir.
He said Sabah was recognised by the United Nations and the international community as part of Malaysia since the formation of the Federation on Sept 16, 1963.
“In fact, this colloquium is highly timely since we just celebrated the 60th Malaysia Day over a week ago,” he said in his closing remarks at the “London International Arbitration Colloquium 2023: State Sovereignty and Immunity in Commercial Arbitration” at the International Dispute Resolution Centre (IDRC) in London on Monday (Sept 25).
Foreign Minsiter Datuk Seri Zambry Abd Kadir said despite the landmark rulings by the French and Dutch courts earlier this year against the purported heirs of Sulu Sultan that were in Malaysia’s favour, the country is still facing unprecedented legal battles across multiple jurisdictions, in its efforts to overturn the recognition and enforcement of the purported Arbitral Awards.
“While these legal actions have come at the expense of valuable resources — funds that could have been allocated to support socio-economic development in Malaysia — I wish to reiterate here, Malaysia will not compromise in the efforts to protect its sovereignty and territorial integrity,” he said.
Zambry further said that what is even more upsetting from the sham award is the fact that Malaysia’s fate and fortunes are still being decided by individuals — or a sole individual, in this case — with no connection to the region.
“Why must the survival and fate of Malaysia lie in the hands of a rogue arbitrator in Europe? Unjust does not even come close to defining this new form of colonialism. If anything, it shows that from the very beginning, the arbitration process is erroneous. Or in terms that are more familiar with the crowd today, mala fide,” he added.
“As it stands, there is a larger concern that if existing shortcomings and loopholes in the international arbitration process are not urgently addressed, other countries may face a similar fate as Malaysia.
“The mere fact that a non-state entity can pursue the concurrent enforcement of fraudulent awards without the consent of relevant parties — or in other words, ‘forum-shopping’ — should be a wake-up call to all of us here today.
“How can we, in all conscience, let arbitration be enshrouded by allegations of abuses of process and erroneous actions?,” asked Zambry.
At a time where common norms, values and practices are increasingly at stake, all parties do not have the privilege to stand idle in the face of blatant misuse of arbitration processes that are happening in front of their eyes, he said.
“Without a doubt, there are sinister entities that intend to undermine the integrity and legitimacy of the system for their own personal benefits.
“This will threaten the very fundamental principles of justice and impartiality of a legal system that many of us believe in. With that in mind, it is time that we reform the third-party litigation ecosystem to ensure a fair balance between access to justice and transparency in litigation actions,” he said.
According to Zambry, Malaysia acknowledges the importance of arbitration as part of alternative dispute resolution, the role of international arbitration institutions and their processes in resolving complex issues.
“As much as the Sulu claims have shocked Malaysia, and I believe, the world too, they have also highlighted that the time is now ripe for an overhaul of the system,” he added.
London International Arbitration Colloquium 2023: State Sovereignty and Immunity in Commercial Arbitration was held at the International Dispute Resolution Centre (IDRC), London, on Monday.
Besides the Legal Affairs Division of the Prime Minister’s Department, the collaborating partners/organisers of the colloquium were the Ministry of Foreign Affairs (MOFA); Asian International Arbitration Centre (AIAC); SOAS University of London, Arbitration and Dispute Resolution Centre (SADRC) and International Dispute Resolution Centre (IDRC).