The Ongoing Territorial Disputes of Saba: A Historical Analysis

Saba, located on the Northern portion of Borneo in Southeast Asia, was part of the Empire of the sultanate of Brunai in the 15th century. In 1878, a concession in perpetuity was obtained by William Coy from the Sultan of Salo, leading to the formation of the British North Borneo Chartered Company in 1888.

North Borneo became a protectorate of the United Kingdom in 1888, with the British North Borneo Chartered Company effectively ruling until 1942. During World War II, the island, including Saba, was occupied by the Japanese from 1942 to 1945.

After the liberation from Japanese occupation, North Borneo was administered by the British military until it became a British Crown Colony. In 1946, seven British-controlled islands were ceded to the Philippine government, but Saba remained part of the British Crown Colony until August 31st, 1963.

Between 1961 and mid-1963, the Cobbold Commission determined the residents' favor for the proposed union of Saba and Sarawak with Malaysia. Despite some opposition, an agreement was signed on August 1st, 1962, leading to the formation of Malaysia on September 16th, 1963, uniting Saba with Malaya, Sarawak, and Singapore.

During President Diosdado Macapagal's administration, the Philippine government claimed full sovereignty over North Borneo, based on the title and dominion seated by the heirs of the Sultan of Salo to the Republic of the Philippines.

The Philippines maintained a territorial claim over North Borneo based on an 1878 agreement between the Sultan of Salo and the North Borneo Chartered Company. The dispute arises from differing interpretations of the agreement, with the Philippines asserting that the sovereignty of the sultanate was not abolished and North Borneo was only leased, while Malaysia views it as a session. The ambiguous term 'pacan' in the treaty plays a crucial role in the interpretation, with implications for the ownership and control of North Borneo.

The annual payment made by the British government to the Sultan of Salo and his heirs, labeled as 'session money,' continued even during British administration of North Borneo. The term 'pacan' in the 1878 treaty was interpreted differently by the Philippines and Malaysia, leading to a halt in payments by Malaysia in 2013. The interpretation of 'pacan' as a lease or grant has significant implications for the ongoing dispute over North Borneo's ownership.

The ownership of Sabah remains uncertain, with conflicting claims from The Heirs of the Sultanate of Salo, a private Filipino citizen, and the Malaysian government. The non-payment of annual rental by Malaysia since 2013 could potentially result in a breach of contract, leading to a possible transfer of control and ownership back to the sultanate's heirs. The importance of Sabah in the Malaysian economy and the foundation of the Malaysian Federation adds complexity to the ongoing dispute.

Before joining Malaysia in 1963, the people of Sabah expressed concerns about being dominated by the more developed Malayan counterpart and feared colonization. Measures were taken to address these concerns, including the formulation of the '20 points' to safeguard the interests of the state. Despite the general sense of misgiving and mistrust, Sabah eventually joined Malaysia, with English as the official language and no state religion as part of the conditions to protect the state's interests.

Sabah, a state in the Malaysian Federation, plays a crucial role contributing $21.8 billion or around 5.8% of the country's 2021 gross domestic product. With over 3.8 million residents across 73,944 square km, Sabah constitutes more than 11% of Malaysia's population and over 1% of its land mass. The state's oil and gas industry is significant, holding about 11 trillion cubic feet of gas and 1.5 billion barrels of oil in reserves, representing 12% and 25% of Malaysia's gas and oil industry respectively.

Ongoing negotiations aim to protect Sabah's oil and gas rights and ensure a fair distribution of revenue. Sabah and neighboring Sarawak state have long sought increased payments from Petronas, the country's energy reserves manager. Sabah is set to collect 5% of state tax from Petronas, expecting around $33 million in 2021. This move aligns with the 20-point condition for North Borneo to retain control over its finance, development, and taxation.

Following Sarawak's agreement with Petronas, Sabah aims to enhance its role in the oil and gas industry. The state seeks greater involvement in its operations and a larger share of revenue from production. Sabah's incorporation into the Malaysian Federation raises legal questions based on historical treaties, emphasizing the need for diplomatic resolutions and adherence to international law.