PRESS DIGEST - Malaysia - June 17

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

ALL NEWSPAPERS

-- Prime Minister Najib Razak said on Tuesday that he believed Parti Islam se-Malaysia (PAS) was sincere in wanting to form a unity government with UMNO as proposed by its president Abdul Hadi Awang.

THE STAR (www.thestar.com.my)

-- The government will make it mandatory for employers to give their maids one day off in a week, Human Resources Minister S. Subramaniam said.

-- AirAsia Bhd (AIRA.KL) has announced a firm order for 10 Airbus A350 XWB aircraft with an option for five more by its low-cost long-haul carrier AirAsia X, a deal valued at $2.2 billion, the company said in a statement.

BUSINESS TIMES (www.btimes.com.my)

-- Property developer KYM Holdings Bhd (KYMH.KL) is expected to sign an agreement as early as next week to help build a 300 million ringgit medical complex in Malacca, its group managing director Raymond Chong Thin Choy said.

-- Long-haul budget carrier AirAsia X has inked a contract to buy 10 Airbus A350s worth more than $2.2 billion (7.8 billion ringgit), with option to purchase another five, AirAsia Bhd group chief executive officer Tony Fernandes said.

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

-- The Health Ministry is getting tough with doctors who have stubbornly refused to alert authorities to dengue cases, Health Minister Liow Tiong Lai said.

THE EDGE FINANCIAL DAILY (www.theedgemalaysia.com)

-- The Kuala Lumpur Composite Index (KLCI) fell more than 1.5 percent on Tuesday in line with regional markets, weighed by losses in key heavyweights including Malayan Banking Bhd (MBBM.KL) and Tenaga Nasional Bhd (TENA.KL).

-- In its aim to attract foreign investors, Penang will set up a promotions representative office in Singapore, Penang chief minister Lim Guan Eng said.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- Australia-based and ASX-listed Mission NewEnergy Ltd, which inked a 114.54 million ringgit turnkey contract with KNM Group Bhd (KNMP.KL) to build a second biodiesel refinery in Pahang, has commenced the commissioning phase of the mechanically completed plant, Mission NewEnergy Ltd said.