dispute

The North Borneo dispute, also known as the Sabah dispute, is the territorial dispute between Malaysia and the Philippines over much of the eastern part of the state of Sabah. Sabah is previously known as North Borneo prior to the formation of the Malaysian federation. The Philippines, presenting itself as the successor state of the Sultanate of Sulu, retains a "dormant claim" on Eastern Sabah on the basis that the territory was only leased to the British North Borneo Company in 1878, with the sovereignty of the Sultanate (and subsequently the Republic) over the territory never having been relinquished. However, Malaysia considers this dispute as a "non-issue" as it interprets the 1878 agreement as that of cession and that it deems that the residents of Sabah (including Eastern Sabah) had exercised their right to self-determination when they joined to form the Malaysian federation in 1963.

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