PRESS DIGEST - Malaysia - June 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 construction cost of the third bridge linking Singapore and Malaysia will be borne by both countries if it takes off, said Prime Minister Najib Razak.

-- Vale International SA, the world's second largest diversified metals and mining company, has agreed to buy 165.5 hectares of land in Manjung, Perak, from property developer KYM Holdings Bhd (KYMH.KL).

BUSINESS TIMES (www.btimes.com.my)

-- The 2010 Budget will kickstart Malaysia's effort towards a new economic model, powered by the services sector and ongoing development of the country's growth corridors, Prime Minister Najib Razak said.

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

-- The World Health Organisation (WHO) declared on Thursday a level 6 influenza A pandemic, putting the world on the highest alert for the disease in 40 years. But Malaysia is prepared for it, Health Minister Liow Tiong Lai said.

THE EDGE FINANCIAL DAILY (www.theedgemalaysia.com)

-- IJM Corporation Bhd's (IJMS.KL) chief executive officer and managing director Krishnan Tan Boon Seng revealed on Thursday that he is most likely to step down at the end of next year under a succession plan to make way for his deputy.

-- Water engineering company Salcon Bhd (SLCN.KL), not long after aborting its planned acquisition of a general insurance company from political party Malaysian Indian Congress' (MIC) investment arm Maika Holdings Bhd earlier this year, is on the prowl again, sources said.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- The budget for 2010 will emphasise on ways to spur the country's economy by making it "high income" -based, with the services sector playing a pivotal role in the new economic model that is currently being finalised, Prime Minister Najib Razak said.

-- Oil and gas services provider SapuraCrest Petroleum Bhd (SCRS.KL) is bidding for projects worth 5 billion ringgit ($1.42 billion) this year to increase its current order book of about 7 billion ringgit, its executive vice-chairman Shahril Shamsuddin said.

THE SUN (www.sn2surf.com)

-- All dealings of the Port Klang Authority in connection with the controversial Port Klang Free Zone project will come under scrutiny, to detect political interference that could have allowed questionable decisions to be made, chairman of the Port Klang Authority ad hoc corporate governance committee Paul Low Seng Kuan said.