PRESS DIGEST - Malaysia - June 18

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

ALL NEWSPAPERS

-- Parti Islam se-Malaysia (PAS) spiritual leader Nik Abdul Aziz Nik Mat has lashed out at deputy president Nasharuddin Mat Isa over his push for unity talks with UMNO and told him it is better for him to leave the party.

THE STAR (www.thestar.com.my)

-- The Securities Commission (SC) and Bursa Malaysia (BMYS.KL) will investigate and take action if there is any evidence of stock market manipulation amidst the current liquidity-driven rally, SC spokesman said.

BUSINESS TIMES (www.btimes.com.my)

-- Scomi Engineering Bhd (SMNG.KL), the energy and logistics engineering subsidiary of Scomi Group Bhd (SCOI.KL), is one of two front-runners to win a $1 billion (3.53 billion ringgit) monorail project in Riyadh, Saudi Arabia, industry sources said.

-- Property developer UEM Land Bhd's (ULHB.KL) plan to sell 17.4ha of land to one of Dubai's largest private developers for 396.5 million ringgit has fallen through, UEM Land managing director Wan Abdullah Wan Ibrahim said.

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

-- As the country's first locally transmitted influenza A (H1N1) case was announced on Wednesday, health authorities were scrambling to contain the disease.

THE EDGE FINANCIAL DAILY (www.theedgemalaysia.com)

-- Damac Properties (M) Sdn Bhd, which is part of Dubai's Damac Group, has pulled out of a deal with UEM Land Holdings (ULHB.KL> to acquire a piece of land for 396.44 million ringgit in Nusajaya, Iskandar Malaysia, UEM Land Holdings said.

-- The Ministry of International Trade and Industry (Miti) announced several measures liberalising further the iron and steel industry including the reduction in import duty and relaxation in the import requirements of both products into the country, Miti said in a statement.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- HO HUP Construction Company Bhd (HHCS.KL) will soon undertake a corporate restructuring exercise that will involve a capital reduction and injection, further sales of land assets and engaging in new project developments to address its PN17 status, its managing director Lim Chin Choy said.

-- Tradewinds (M) Bhd (TWMM.KL) is pumping in up to 100 million ringgit in capital expenditure (capex) to increase its sugar division's annual production and storage capacities in order to position itself in the right place when the economic situation rebounds, its group chief executive officer Mohd Nazri Shariff said.