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.

THE STAR (www.thestar.com.my)

-- The rift in Parti Islam se-Malaysia (PAS) widened to a more serious level when 10 of the party's Members of Parliament (MPs) signed a statement throwing their support behind their spiritual leader Nik Abdul Aziz Nik Mat, the strongest opponent to unity talks with UMNO.

-- Cash-rich companies enjoy a significant advantage over their less fortunate rivals in these uncertain economic times, analysts said.

BUSINESS TIMES (www.btimes.com.my)

-- RHB Capital Bhd (RHBC.KL), the country's fourth largest banking group, wants to eventually get a full banking licence in Vietnam, after buying 49 percent of a stockbroker there last year, group managing director Michael Barrett said.

-- Petroleum Nasional Bhd (Petronas) PETR.UL has agreed to buy two million tonnes of liquefied natural gas (LNG) a year for 20 years beginning 2010 from its partner firms in the multi-billion- dollar Gladstone LNG project in Queensland, Australia, Petronas said in a statement.

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

-- From next week, anyone flying into Malaysia will have to fill a mandatory health declaration form which will be given to them onboard the plane, Deputy Prime Minister Muhyiddin Yassin said.

-- Prime Minister Najib Razak gave his assurance on Thursday that the Sultan of Johor would be consulted on the proposal for a third bridge to Singapore.

THE EDGE FINANCIAL DAILY (www.theedgemalaysia.com)

-- The government's decision to liberalise further the domestic steel sector has received contrasting comments from local steel manufacturers, Malaysia Steel Works (KL) Bhd managing director Tai Hean Leng said.

-- Prime Minister Najib Razak's proposal for a third link to Singapore met with a serious obstacle on Thursday, when the Johor Sultan rejected the idea outright.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- Petroleum Nasional Bhd PETR.UL, which paid Australia's Santos Ltd $2.01 billion (7.08 billion ringgit) for a 40 percent stake in an Australia-based integrated liquefied natural gas (LNG) facility, has now signed a heads of agreement to purchase two million tonnes of LNG annually from the plant for 20 years, starting 2014, Petronas said in a statement.

THE SUN (www.sun2surf.com)