PRESS DIGEST - Malaysia - June 3

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)

-- Malaysia and Vietnam have reached a "broad understanding" to resolve their overlapping claims in the South China Sea, including parts of the Spratly Islands, says Prime Minister Najib Razak.

BUSINESS TIMES (www.btimes.com.my)

-- Telco MAXIS Communications Bhd that was taken private by its owners in mid-2007 has shot down market talk that it is eyeing a relisting through pay-TV operator Astro AllAsia Networks (AAAN.KL), both of which are controlled by billionaire businessman T. Ananda Krishnan.

THE EDGE FINANCIAL DAILY (www.theedgemalaysia.com)

-- National carrier Malaysia Airline System Bhd has been ordered to pay a total of 7 million Euros to Advanced Cargo Logistic GmbH for breach of contract in not maintaining its European cargo hub at Frankfurt-Hahn airport for 10 years from 1999.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- The Labuan Offshore Financial Services Authority (Lofsa) yesterday issued the Guideline on Co-Loication of a Labuan Holding Company, which will allow Labuan holding companies to establish their operatioanl and management offices in Kuala Lumpur.

THE SUN (www.sun2surf.com)

-- Eighty percent of public works projects in the country have been given an extension of time, a practice that needs to be stopped as it could lead to cost overruns, says Works Minister Shaziman Abu Mansor.

($1=3.527 Malaysian Ringgit)

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