The Malaysian Position
UN-Recognized Formation: Sabah became a part of the independent Federation of Malaysia in 1963. This inclusion was validated by the United Nations (UN) after the Cobbold Commission of 1962 was formed to gauge the sentiments of the local population. The investigation found that the majority of Sabahans supported joining Malaysia.
Effective Administration: Malaysia has exercised continuous administration, sovereignty, and control over the state for over six decades.
The Philippine Position
Sultanate of Sulu's Claim: The claim asserts that the Sultanate of Sulu historically owned North Borneo (the former name of Sabah).
Lease vs. Cession: In 1878, the Sultan of Sulu entered into an agreement with the British North Borneo Company. The Philippine government argues this agreement was a "lease" rather than a "cession" of the territory.
Heir Dispute: Because the territory was never officially transferred to foreign sovereignty but only rented, the Philippine government maintains that it should fall under Philippine jurisdiction, while the heirs of the Sultanate of Sulu continue to pursue claims for compensation and ownership.