PRESS DIGEST - Malaysia - Jan 5

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)

-- Malaysian banks dealing in hedging instruments, particularly that involving foreign exchange, are reporting profits in this area over the past two quarters, analysts said.

BUSINESS TIMES (www.btimes.com.my)

-- YTL Power International Bhd (YTLP.KL) has submitted proposals to grow its business in a move that would test the government's resolve over an important policy.

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

-- The Organisation of the Islamic Conference may need to think about forming its own peacekeeping force in the wake of the conflict in the Gaza strip, Minister in the Prime Minister's Department Ahmad Zahid Hamidi said.

THE EDGE FINANCIAL DAILY (www.theedgedaily.com)

-- SAAG Consolidated (M) Bhd (SAAH.KL), which specialises in servicing the oil and gas sector, is counting on its expertise and technological advancements to ride out the current bleep in the industry, its Chief Executive Officer, Anand Subramaniam said.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- The Minority Shareholders Watchdog Group (MSWG), which has played a vital role in shareholder activism and protection of minority interest in the country, is expected to face more challenges in 2009 as corporate governance and best practices may take a back seat when company survival is at stake, Chief Executive Officer of MSWG from 2004 to 2008, Wahab Jaafar Sidek said.

-- After failed attempts to renegotiate the power purchase agreements (PPAs) in the past, the government is now looking at renegotiating specific areas of the contracts to relieve Tenaga Nasional Bhd (TENA.KL) from the financial strain of over-capacity payments, Deputy Prime Minister Najib Razak said.

THE SUN (www.sun2surf.com)

-- Ringgit speculation abroad should be monitored so that Malaysia does not become a victim of opportunistic groups seeking to gain from the fall of the local currency, former president of the local stock exchange Muhammad Salleh Majid said.

-- The Johor state government is looking at a proposal by an international company to invest 17 billion ringgit to construct an oil refinery at Teluk Ramunia, Kota Tinggi, said its Chief Minister Abdul Ghani Othman.

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