The Dutch court of appeal has ruled against the eight descendants of a former sultanate, stating that they cannot seize Malaysian assets in the Netherlands to enforce a $15-billion arbitration award against the Malaysian government
The court determined that the heirs lacked the right to seize the assets since they were not involved in the arbitration agreement that led to the award. The award itself was issued in February 2022 by a French court, which found Malaysia in violation of an 1878 land leasing agreement.
Despite the heirs’ attempts to seize Malaysian assets in the Netherlands, including those belonging to state oil firm Petronas, the Dutch court ruled that they did not possess the legal standing to do so.
The Malaysian government welcomed the ruling, considering it a significant victory. They have consistently stated their refusal to recognize the arbitration award and plan to continue contesting the claims made by the heirs through legal means.
While the ruling represents a setback for the heirs, they have expressed their intention to persist with their claims. They are even contemplating appealing the decision made by the Dutch court.
Given the complexity of the case, it remains uncertain what the long-term implications of the ruling will be. Nonetheless, it is evident that the dispute between the heirs and the Malaysian government is far from concluded.
