PRESS DIGEST - Malaysia - March 12

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 historic 12th general election has not only thrown up shocking results but also left the political parties in a quandary in trying to form their governments.

- The KL Composite Index (KLCI) bounced back on Tuesday after the steep fall on Monday sent bargain hunters swooping in on stocks that have taken a beating.

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

- Democratic Action Party (DAP) Secretary-General Lim Guan Eng was on Tuesay sworn in as the fourth chief minister of Penang.

- Former Malaysian Indian Congress (MIC) deputy president S. Subramaniam wants to play a role in revitalising the party.

BUSINESS TIMES (www.btimes.com.my)

- Prominent stock market investor Chua Ma Yu has cited high energy costs and the US subprime crisis as reasons for selling his 14.02 percent stake in Star Cruises Ltd at a loss.

- Country Heights founder, Lee Kim Yew, said he will quit his post as group managing director of Country Heights Holdings Bhd (CHHB.KL), but denied that he was selling his shares in the property company.

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

- Bursa Malaysia (BMYS.KL) staged a rebound on Tuesday, driven mainly by bargain hunting in the plantation and finance sectors as well as key blue-chip counters, a day after posting its biggest single-day loss.

- IOI Corp (IOIB.KL>, the world's third-biggest listed palm oil firm, plans to buy large tracts of plantation land in Malaysia and set up processing plants in Europe to boost revenues and take advantage of the global commodity boom, Executive Director Lee Yeow Chor said.

THE MALAYSIAN RESERVE

- An international pioneer of floating hotels, Sunborn Group, is keen to partner with Malaysian companies to build and operate five to seven yacht hotels, valued at some 1.25 billion ringgit ($390.6 million) to 1.75 billion ringgit.

THE SUN (www.sun2surf.com)