History
In the past, the island was at the centre of a territorial dispute between Malaysia and Indonesia. The matter was brought for adjudication before the International Court of Justice and, at the end of 2002, the Court awarded the island along with the island of Ligitan to Malaysia, on the basis of the "effective occupation" displayed by the latter's precedessor (Malaysia's former colonial power, Great Britain) and the absence of any other superior title. The Philippines had applied to intervene in the proceedings on the basis of its claim to Northern Borneo, but its request was turned down by the Court early in 2001. In year 2004, the Government of Malaysia ordered all on-site dive & resort operators of Sipadan to move their structures out of the island by the 31st of December 2004. This move is mainly to conserve a balanced eco-system for Sipadan and its surrounding. Diving will continue to be allowed in Sipadan for divers who are ferried in and out by dive & resort operators from the mainland and surrounding islands. On May 15, 2006, a barge carrying thousands of tonnes of building material beached on the island, destroying a
significant portion of reef between the old pier and Barracuda Point, said to be about 372sq metres. The purpose of the building supplies (mainly concrete and gravel) was apparently for a USD1.3 million tourist facility including resthouse, toilets and scuba shop, said the State Minister of Tourism, Culture and Environment Tan Sri Chong Kah Kiat but denied by the Chief Minister Datuk Seri Musa Aman. Later, it was reported that it was a Federal Government funded project