She said UTC had asked the government for immediate payment of US$15 billion, calling it “cession money”, and sought recognition for them as “a sovereign and independent state kingdom”.

It had also threatened to commence legal action against Malaysia in the US, she said in a statement today.

“This represents the latest frivolous and baseless attempt by a group to claim sovereignty over Malaysian territory and to extort payments from Malaysia,” Azalina said.

She highlighted how Malaysia had successfully defeated similar attempts by the self-proclaimed heirs of Sultan Jamalul Kiram II based on a fraudulent arbitration award issued by rogue arbitrator Gonzalo Stampa in Spain.

“The Sulu sultanate has been defunct for several decades and is not recognised by any sovereign state or international organisation,” she said.

Azalina also said the recent conviction of Stampa by a Madrid criminal court, and his six-month jail term and one-year disqualification from practising as an arbitrator, confirmed the criminal abuse of the arbitration processes and gross injustices suffered by Malaysia as a result of the so-called Sulu case.

She reaffirmed Malaysia’s steadfast stance on Sabah, saying Putrajaya has again emphasised that the exercise of self-determination by Sabah to become part of Malaysia has been a settled legal fact since decolonisation in 1963.

Sabah has been an integral part of Malaysia since then, she said.

In light of these developments, she said the international commercial arbitration system is an important mechanism within global dispute resolution and it must be protected from such illegitimate attempts to extort sovereign states under the guise of arbitration claims.

“The Malaysian government is actively looking at all possible legal remedies against any frivolous claims to defend its sovereignty, security and interests at all times,” she said.