Sabah is a Malaysian state located on the northern portion of the island of Borneo (see map). It is the second largest state in Malaysia after Sarawak, which it borders on its south-west. It also shares a border with the province of East Kalimantan of Indonesia in the south. In spite of its status as a Malaysian state, Sabah remains a disputed territory, the Philippines has a dormant claim over the territory. The capital of Sabah is Kota Kinabalu, formerly known as Jesselton. Sabah is known as Sabah, negeri di bawah bayu, which means 'Sabah, the land below the winds', because of its location being just south of the typhoon prone region around the Philippines.

History

1500s-1800s

Sabah or North Borneo was part of the Sultanate of Brunei around the early 16th century. This was during the period when the Sultanate's influence was at its peak. In 1658 the Sultanate of Brunei ceded the north-east portion of Borneo to the Sultan of Sulu in compensation for the latter's help in settling a civil war in the Brunei Sultanate. In 1761 an officer of the British East India Company, Alexander Dalrymple, concluded an agreement with the Sultan of Sulu to allow him to set up a trading post in the region. This together with other attempts to build a settlement and a military station centering around Pulau Balambangan proved to be a failure. There was minimal foreign interest in this region afterward and control over most parts of north Borneo seems to have remained under the Sultanate of Brunei.

In 1865 the American Consul of Brunei, Claude Lee Moses, obtained a 10-year lease over North Borneo from the Sultan of Brunei. Ownership was then passed to an American trading company owned by J.W. Torrey, T.B. Harris and some Chinese merchants. They set up a base and settlement in Kimanis but this too failed due to financial reasons. The rights of the trading company were then sold to Baron Von Overbeck, the Austrian Consul in Hong Kong, and he later obtained another 10-year renewal of the lease. The rights were subsequently transferred to Alfred Dent, whom in 1881 formed the British North Borneo Provisional Association Ltd.

In the following year, the British North Borneo Company was formed and Kudat was made its capital. In 1883 the capital was moved to Sandakan to capitalise on its potential of vast timber resources. In 1888 North Borneo became a protectorate of Great Britain. Administration and control over North Borneo remained in the hands of the Company despite being a protectorate and they effectively ruled until 1942. Their rule had been generally peaceful except for some rebellions, including one led by the Suluk-Bajau leader Mat Salleh from 1894 to 1900,^[1] and another led by the Muruts which is known as the Rundum resistance in 1915.^[2]

Second World War and the road to independence

From 1942 to 1945 during the Second World War, Japanese forces occupied North Borneo. The Japanese forces landed in Labuan on January 1, 1942, and continued to invade the rest of North Borneo. Bombings by the allied forces devastated of most towns including Sandakan, which was totally razed to the ground. Resistance against Japanese occupation were concentrated on the west and north coast of North Borneo. The resistance in Jesselton was led by Albert Kwok and Jules Stephens of the Kinabalu Guerillas. Another resistance was led by Panglima Alli from Sulug Island, off the coast of Jesselton. In Kudat, there were also some resistance led by Tun Datu Mustapha. On October 10, 1943, the Kinabalu Guerrilas together with followers of Panglima Alli staged a surprise attack on the Japanese. The attack however was foiled. The 324 local residents who participated in the attacks, including Albert Kwok and Panglima Alli, were detained in Petagas and later executed on January 21, 1944.^[3] The site of the execution is today known as the Petagas War Memorial.

When Japan surrendered at the end of the war, North Borneo was administered by the British Military Administration and in 1946 it became a British Crown Colony. Jesselton was chosen to replace Sandakan as the capital. The Crown continued to rule North Borneo until 1963. On August 31, 1963 North Borneo attained self-government. There was a call for complete independence on that date by it was denied by the British Governor who remained in power until Malaysia Day.^[4] The intention had been to form Malaysia on August 31 but due to objection from the Philippines and Indonesia, the formation had to be postponed to September 16.^{[citation needed]} On September 16, 1963, North Borneo together with Malaya, Sarawak and Singapore formed the Federation of Malaysia and from then on, it became known as Sabah and declared independent from British sovereignty.^[2][5] To safeguard the interest of North Borneo in the new federation, a 20-point agreement was entered into between the federal and the state government.

Philippine claim

The Sultanate of Sulu was granted the territory as a prize for helping the Sultan of Brunei against his enemies and from then on that part of Borneo was recognized as part of the Sultan of Sulu's sovereignty. In 1878, Baron Von Overbeck, an Austrian partner representing The British North Borneo Company and his British partner Alfred Dent, leased the territory of Sabah. In return, the company was to provide arms to the Sultan to resist the Spaniards and 5,000 Malayan dollars annual rental based on the Mexican dollar's value at that time or its equivalent in gold. This lease was continued until the independence and formation of the Malaysian federation in 1963 together with Singapore, Sarawak and the states of Malaya. As of 2004, the Malaysian Embassy to the Philippines had been paying cession/rental money amounting to US$1,500 per year (about 6,300 Malaysian Ringgits) to the heirs of the Sultanate of Sulu.^[6]

The contract between Sri Paduka Maulana Al Sultan Mohammad Jamalul Alam, representing the sultanate as owner and sovereign of Sabah on one hand, and that of Gustavus Baron de Overbeck and Alfred Dent representing the North Borneo Company, on the other as lessees of Sabah, was executed on January 22, 1878. The Lease prohibits the transfer of Sabah to any nation, company or individual without the consent of His Majesty’s Government (“Government of the Sultan of Sulu”).^[7]. Although it is mentioned to be a permanent lease, it is contrary to international law, which states that the terms for a lease contract can only be for 99 years, as in the case of Hong Kong and Macau when these were leased to Great Britain and Portugal respectively, by China and subsequently returned after the expiration of the lease.^{[citation needed]} This would make the lease on Sabah overdue by 130 years.^{[citation needed]}

Less than a decade later, the Sultanate of Sulu came under the control of Spain and in 1885, Spain relinquished all of its claim to Borneo to the British in the Madrid Protocol of 1885.^[8]

In spite of that, in 1906 and 1920 the United States formally reminded Great Britain that Sabah did not belong to them and was still part of the Sultanate of Sulu on the premise that Spain never acquired sovereignty over North Borneo to transfer all its claims of sovereignty over North Borneo to Great Britain on the Madrid Protocol of 1885. This is so because the Sultan of Sulu did not include his territory and dominion in North Borneo in signing the treaty of 1878 recognizing the Spanish sovereignty over “Jolo and its dependencies.” North Borneo was never considered a dependency of Jolo. However, the British Government ignored the reminder and still annexed the territory of North Borneo as a Crown Colony on July 10, 1946. This was in spite of the fact that the British Government was aware of the decision made by the High Court of North Borneo on December 19, 1939, that the successor of the Sultan in the territory of Sabah was the Government of the Philippine Islands and not Great Britain.^[9]

On September 12, 1962, during President Diosdado Macapagal's administration (the father of the present Philippine president, Gloria Macapagal Arroyo), the territory of North Borneo, and the full sovereignty, title and dominion over the territory were ceded by the then reigning Sultan of Sulu, HM Sultan Muhammad Esmail E. Kiram I, to the Republic of the Philippines.^[10] The cession effectively gave the Philippine government the full authority to pursue their claim in international courts. The Philippines broke diplomatic relations with Malaysia after the federation had included Sabah in 1963. It was revoked in 1989 because succeeding Philippine administrations have placed the claim in the back burner in the interest of pursuing cordial economic and security relations with Kuala Lumpur. ^[11] To date, Malaysia continues to consistently reject Philippine calls to resolve the matter of Sabah's jurisdiction to the International Court of Justice.^[12]