PRESS DIGEST - Malaysia - Sept 23

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)

-- Products from China containing milk, chocolate and chocolate milk are now banned from entering the country, the Health Ministry said.

-- American International Assurance Bhd (AIA Bhd) says it is moving ahead with aggressive expansion plans to stamp its mark as one of the fastest growing insurers in Malaysia despite the recent financial crisis that rocked its U.S. parent, American International Group Inc (AIG.N), said AIA Chief Executive Officer Khor Hock Seng.

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

-- Prime Minister Abdullah Ahmad Badawi on Monday said the 2010 transfer of leadership to his deputy would go ahead as planned.

-- United Malays National Organisation (UMNO) leaders in Penang and Kelantan on Monday reiterated their support for the transfer of power from Abdullah Ahmad Badawi to his deputy Najib Razak in 2010.

BUSINESS TIMES

-- Telekom Malaysia (TLMM.KL) has made a 417.3 million ringgit ($122.2 million) offer to take listed subsidiary VADS Bhd VADS.KL private as it seeks to boost earnings, TM said in a statement.

-- Malaysia has offered itself as a production base for Japanese hybrid cars if carmakers like Toyota and Honda plan to expand outside Japan, International Trade and Industry Minister Muhyiddin Yassin said.

THE EDGE FINANCIAL DAILY (www.theedgedaily.com)

-- It was no less than the newly appointed Finance Minister Najib Razak and Bank Negara Malaysia Governor Zeti Akhtar Aziz who came out strongly to dismiss suggestions for the ringgit to be repegged against the US dollar.

-- Fault lines have appeared in United Malays National Organisation (UMNO) over whether party president and Prime Minister Abdullah Ahmad Badawi should hand over power to his deputy soon.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- Bahrain-based Unicorn Investment Bank (Unicorn), an Islamic investment bank with an outfit in Malaysia, is actively looking at investing in a number of areas locally, with plantation and real estate emerging strongly on their list, said Chairman of Unicorn International Islamic Bank Malaysia Bhd Vaseeher Hassan.

THE SUN (www.sun2surf.com)