PRESS DIGEST - Malaysia - May 29

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

ALL NEWSPAPERS

-- Malaysia's economy is expected to shrink by four to five percent this year, its biggest fall in a decade, Prime Minister Najib Razak said.

THE STAR (www.thestar.com.my)

-- The Port Klang Authority has been ordered to seek legal remedies based on the findings of the Port Klang Free Zone report and to submit copies of the report to the Malaysian Anti-Corruption Commission and the Public Accounts Committee, Transport Minister Ong Tee Keat said.

-- There are mixed signals on the economic recovery front although some confidence has returned, director-general of the Economic Planning Unit (EPU), Sulaiman Mahbob said.

BUSINESS TIMES (www.btimes.com.my)

-- Malaysian Resources Corp Bhd (MRCB) (MYRS.KL) is developing a one billion ringgit office and residential project at Kuala Lumpur Sentral, the city's largest transportation hub, MRCB group managing director Shahril Ridza Ridzuan said.

-- Budget carrier AirAsia Bhd (AIRA.KL) is back in the black with a net profit of 203.15 million ringgit in the first quarter of 2009, after posting two consecutive quarterly losses previously, its group chief executive office Tony Fernandes said.

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

-- Malaysia on Thursday strongly urged North Korea to discontinue its nuclear tests, saying it can hinder efforts to maintain peace and stability in Northeast Asia and keep the region and world free of nuclear weapons, the Foreign Ministry said in a statement.

THE EDGE FINANCIAL DAILY (www.theedgemalaysia.com)

-- The report on the Port Klang Free Zone (PKFZ) has finally been made public in its entirely, revealing details on how the transhipment megahub project that was initially estimated at 1.957 billion ringgit ended up costing the Port Klang Authority 4.947 billion ringgit, including interest cost due to deferred payments, PricewaterhouseCoopers report said.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- Axiata Group Bhd (AXIA.KL) does not have any plans at the moment to increase its stake in India's Idea Cellular Ltd, its executive director Yusof Annuar Yaacob said.

THE SUN (www.sun2surf.com)