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 was previously known as North Borneo prior to the formation of the Malaysian federation.
Left: The first concession treaty was signed by Sultan Abdul Momin of Brunei on 29 December 1877, appointing Baron von Overbeck as the Maharaja Sabah, Rajah Gaya and Sandakan. Right: The second concession treaty was signed by Sultan Jamal ul-Azam of Sulu on 22 January 1878 also appointing Baron de Overbeck as Dato Bendahara and Raja Sandakan, approximately three weeks after the first treaty.
Arbitration is a formal method of dispute resolution involving a neutral third party who makes a binding decision. The third party neutral render the decision in the form of an 'arbitration award'. An arbitration decision or award is legally binding on both sides and enforceable in the courts, unless all parties stipulate that the arbitration process and decision are non-binding.
The London Court of International Arbitration