PRESS DIGEST - Malaysia - Sept 29

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 outstation journeys rush for Hari Raya (Eid al-Fitr) festive turned chaotic in the Klang Valley as many motorists who wanted to fill up their tanks were faced with "out of stock" signs at pumps.

-- Hopes are high that negotiations with Somalian pirates for the release of the Malaysian International Shipping Corp vessel MT Bunga Melati Dua and its crew members will be successful, Prime Minister Abdulah Ahmad Badawi said.

-- Overseas expansion will be a key strategy that MNRB Holdings Bhd (MNRB.KL) will pursue actively for it to capture a slice of the world's growing and lucrative takaful and reinsurance businesses, its President Anuar Mohd Hassan said.

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

-- Malaysia has voiced concern at the United Nations over recent attempts by the United States to question its national law and administration of justice, Foreign Minister Rais Yatim said.

-- The majority of Malaysians in the federal territory of Labuan are against the idea of the island being handed back to Sabah, Labuan Member of Parliament Yussof Mahal said.

BUSINESS TIMES

-- Top lender Malayan Banking Bhd (Maybank) (MBBM.KL) will be the main focus of investors on Monday after its 8.6 billion ringgit deal to buy an Indonesian lender appears to be all but doomed.

-- Property developer Mah Sing Group Bhd (MAHS.KL) is keen to do more commercial developments in Sungai Besi, Kuala Lumpur, as the location is the latest commercial hub, its group Managing Director Leong Hoy Kum said.

THE EDGE FINANCIAL DAILY (www.theedgedaily.com)

-- The alleged involvement of a former finance minister in Malayan Banking Bhd's (MBBM.KL) proposed acquisition of a 55.6 percent stake in Bank Internasional Indonesia (BII) cropped up during Maybank shareholders' meeting last week.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- AIG General Insurance (Malaysia) Bhd said the crisis of its parent American International Group Inc has not impaired its expansions plans or targets, adding that it is on track to meet this year's growth target of 12 percent to 13 percent in terms of premium written.

-- The Securities Commission has obtained a landmark 285.09 million ringgit High Court judgement against three defendants involved in the Swisscash investment scam that could ultimately lead to the scam's investors being compensated.