PRESS DIGEST - Malaysia - Feb 16

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 country's latest trade figures announced last week have brought closer to home the reality that the current economic downturn could be more severe than anticipated.

BUSINESS TIMES (www.btimes.com.my)

-- After some four years of discussions and dialogues with industry players, an amended and more lax guideline governing the foreign retail trade in Malaysia will finally be ready in March 2009, the secretary-general of the Ministry of Domestic Trade and Consumer Affairs, Mohd Zain Mohd Dom said.

-- The government has allowed MMC Corp Bhd (MMCB.KL) to talk to foreign parties on the proposed sale of its port in Johor, relaxing an earlier stand, sources said.

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

-- Prime Minister Abdullah Ahmad Badawi will brief the rulers at their next conference on developments related to the political situation in Perak.

THE EDGE FINANCIAL DAILY (www.theedgedaily.com)

-- Ever since the U.S. housing bubble burst in 2007 leading to the collapse of the global financial system last year, investors have been scurrying to seek alternative investment platforms and Islamic finance is deemed to be one of the viable and attractive options.

-- The existing companies the main and second boards of Bursa Malaysia (BMYS.KL) will be automatically transferred to the newly created unified board upon completion of the merger between the two boards, a source said.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- MK Land Holdings (MKLH.KL) is looking to secure 35 million ringgit in financing to expand its resort business in Bukit Merah, Perak, sources said.

-- India-based Vinakaya Mission University is investing up to 220 million ringgit in Malaysia over the next six years on various education-related projects, said Penang International Dental College in Butterworth Managing Director S Sharavanan.

THE SUN (www.sun2surf.com)

-- In what is perceived as a smear campaign, private photographs and video clips of a Pakatan Rakyat (People's Alliance) assemblywoman from Selangor are being circulated, sources said.