PRESS DIGEST - Malaysia - Jan 8

Following are the main stories in Malaysian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

THE STAR (www.thestar.com.my)

- The bigger your car, the more you will have to pay for petrol from May 1 because the government is going to change the way fuel is subsidised, said Domestic Trade, Cooperatives and Consumerism Minister Ismail Sabri Yaakob.

- Khazanah Nasional Bhd is believed to have obtained the nod from Bank Negara to negotiate for the sale of its 10 percent stake in EON Capital Bhd EONP.KL, sources said.

NEW STRAITS TIMES (www.nst.com.my)

- Prime Minister Najib Razak said the government cannot stop Muslim groups from expressing their concern about the use of the word "Allah" by non-Muslims.

- Parti Keadilan Rakyat (People Justice Party) secretary-general Salehuddin Hashim has quit the party, ending weeks of speculation about how unhappy he had become about its state of affairs.

BUSINESS TIMES (www.btimes.com.my)

- Former finance minister Daim Zainuddin may invest in a local oil and gas company and is believed to have budgeted close to 500 million ringgit to tap the growing industry, sources said.

- Malaysia expects to exceed the 20 billion ringgit foreign direct investment (FDI) target for 2009 set under the Third Industrial Master Plan (IMP3), Malaysian Industrial Development Authority (Mida) director-general Jalilah Baba said.

THE EDGE FINANCIAL DAILY (www.theedgedaily.com.my)

- Low TUck Choy, who is fighting the management of Ho Hup Construction Co Bhd (HHCS.KL) led by Vincent Lye, has proposed an alternative regularisation plan to revive the construction outfit.

- Investors, fretting over the lack of clarity about the status of Alliance Bank Malaysia Bhd's top management, including its chief executive officer (CEO) Bridget Lai, sold down on its parent company, Alliance Financial Group Bhd on Thursday.

THE MALAYSIA RESERVE (www.themalaysianreserve.com)

- Petra Perdana Bhd (PTRD.KL), which has been a group of shareholders and senior company executives calling for the removal of four members of its board, has hit back at its critics and defended its actions in selling off its shares in associate firm Perta Energy Bhd (PTRE.KL), its executive chairman Tengku Ibrahim Petra Tengku Indra Petra said.

- The government plans to introduce a two-tier pricing system for petrol on May 1 this year as part of a revamp to prevent foreigners benefiting from the subsidy meant for Malaysian citizens, said Domestic Trade, Cooperatives and Consumerism Minister Ismail Sabri Yaakob.

THE SUN (www.sun2surf.com)

- A national cemetery, Pusara Negara, is being created as a final resting place for national figures and heroes.

- Malayan Banking Bhd (Maybank) (MBBM.KL) aims to expand its regional network by increasing the number of its branches and offices worldwide from 1,750 to more than 2,000 in the next few years, Maybank president Abdul Wahid Omar said.

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($1=3.430 Malaysian Ringgit)