PRESS DIGEST - Malaysia - June 23

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)

-- More schools have been affected by the spread of the influenza A (H1N1) virus.

-- The capital market is seeing some signs of life although new money is yet to enter in a big way, said deputy chief executive officer of CIMB group Lee Kok Kwan.

BUSINESS TIMES (www.btimes.com.my)

-- Auto and plantation group Oriental Holdings Bhd (OTLS.KL) plans to open a 200 million ringgit specialist hospital in Malacca in 2012, to strengthen its healthcare division, its director Tan Chong Siang said.

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

-- Prime Minister Najib Razak on Monday described Pakatan Rakyat's (People Unity) refusal to consider a unity government as being of no consequence to the ruling coalition, which holds a commanding majority in Parliament.

-- The development cost for the Port Klang Free Zone will only spiral to 12.5 billion ringgit in a worst-case scenario if there is no government intervention or efforts to promote the facility, Transport Minister Ong Tee Keat said.

THE EDGE FINANCIAL DAILY (www.theedgemalaysia.com)

-- Bank Negara Malaysia (BNM) on Monday rejected EON Capital Bhd's (EONP.KL) proposed issuance of up to 58.71 million new warrants to Primus Pacific Partners LLP, throwing a spanner in the banking group's objective of raising funds to boost its capital, EON Capital said.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- The central bank is on the verge of appointing Pos Malaysia Bhd (PSHL.KL) as the agent for motorists to buy motor insurance from the industry pool, now that most insurers have declined to underwrite directly that segment of the insurance market, sources said.

-- YTL Corp Bhd (YTLS.KL), which holds an indirect 26.6 percent stake in Starhill Global Real Estate Investnent Trust (Starhill Global REIT), has signed a sub-underwriting agreement with the latter's joint lead managers and underwriters of facilitate a proposed one-for-one rights issue that would see the REIT raise some S$337.3 million (819.48 million ringgit), YTL said.

THE SUN (www.sun2surf.com)

-- Berjaya Land Bhd (B-Land) (BLAD.KL) recorded a revenue of 973.2 million ringgit and pre-tax profit of 26.9 million ringgit for the fourth quarter ending April 30 compared with a revenue of 1.0 billion ringgit and pre-tax profit of 634.9 million ringgit in the previous year's corresponding quarter.