Because of invasion by Royal Sulu Army:

Malaysia is justified in stopping the RM5,300 in permanent cessation payment to the heirs of the so-called Sulu Sultanate in 2013 since the armed men who intruded in Lahad Datu that year identified themselves in covert as the Royal Army of Sulu or the Royal Security Forces of the Sultanate of Sulu and North Borneo from Southern Philippines’. 
The late Sultan of Sulu Jamalul Kiram III was reported to have directed them to invade Lahad Datu, resulting in the deaths of about a dozen Malaysian security personnel

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