Sulu heirs ‘alarming’ threat to sue Malaysia for US$15 billion in US court is ‘extortion scheme’, Azalina says

The Minister in the Prime Minister’s Department (Law and Institutional Reforms) likened UTC’s claims, which constitute about 16 per cent of the national budget, to extortion.

Such demands, she said, are a threat to the integrity of sovereign states and the principles of justice.

UTC had asked the Malaysian government for an immediate payment of US$15 billion in what it dubbed as “cession money”.

The group also sought the recognition of UTC as a “sovereign and independent state kingdom”.

The UTC claims came after failed attempts by the so-called heirs of the defunct Sulu Sultanate to seek compensation totalling 68.8 billion ringgit against Malaysia.

“TPLF often prioritises profit over justice, challenging the core purpose of our legal system,” she said.

While litigation funding is crucial for access to justice, she said its multibillion-dollar industry status raises questions about its true intent.

“A lack of regulation poses a global threat, calling for urgent oversight,” she added.

Azalina said the secretive nature of TPLF in sham arbitrations necessitates global regulatory oversight and ethical standards to prevent abuse and exploitation.

“Calls for transparency in TPLF are growing,” she said, adding that US federal lawmakers and the European Parliament had proposed to regulate this industry and mitigate national security risks.

“Litigation funding must be transparent and regulated to prevent abuse.

“Malaysia advocates for ongoing dialogue to regulate this industry effectively,” she said.