PRESS DIGEST - Malaysia - July 8

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

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

- Concerned about the political mudslingling of recent days, the prime minister described slander as an act of treason against the country's peace, stability and prosperity.

BUSINESS TIMES (www.btimes.com.my)

- The Employees Provident Fund (EPF) will adopt a cautious stance in equity investment for the rest of the year, its Chief Executive Officer Azlan Zainol said.

- CLSA Asia-Pacific has cut its year-end target for the Kuala Lumpur Composite Index (KLCI) by 15 percent to 980 points, believed to be the lowest estimate in the market.

THE STAR (www.thestar.com.my)

- The no-confidence move by the Sabah Progressive Party (SAPP) against Prime Minister Abdullah Ahmad Badawi is off - at least for now, said its party Vice-President Chua Soon Bui.

- The allegations being spread to create the unsettled political atmosphere lately are tantamount to treachery, Prime Minister Abdullah Ahmad Badawi said.

- Telekom Malaysia Bhd (TLMM.KL) will have to wait at least four to six weeks before it can ink an agreement with the government for the 11.3 billion ringgit high-speed broadband infrastructure project, group Chief Executive Officer Zamzamzairani Md Isa said.

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

- The toxic combination of political uncertainties, soaring inflation and weaker economic growth has led to a downward revision on the outlook of the Kuala Lumpur Composite Index (KLCI) for the second half (2H).

THE MALAYSIAN RESERVE (news@themalaysianreserves.com)

- Ingress Corp Bhd's (IESS.KL) 49 percent-owned Balfour Beatty Rail Sdn Bhd (BBRail) has secured a one billion ringgit contract to implement the rail system package for the Ipoh-Padang Besar electrified double-tracking project.

- Pesaka Astana (M) Sdn Bhd was ordered to pay 157.8 million ringgit to ten financial institutions for defaulting on bond payments in a consent judgement handed down by the Kuala Lumpur High Court on Monday.

THE SUN (www.sun2surf.com)