PRESS DIGEST - Malaysia - Aug 11

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)

-- Timber giant Ta Ann Holdings Bhd (TAAN.KL) plans to ride on the recovery of plywood prices by diversifying into new markets in Europe and the Middle East this year, while reducing its traditional exports to Japan, group Managing Director Wong Kuo Hea said.

-- Alarm bells have been sounded in Telekom Malaysia Bhd (TM) (TLMM.KL) of the need to collect nearly three billion ringgit in debts.

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

-- Existing government contracts will be revised to take into account the rising cost of construction materials.

-- Public discussions on sensitive issues like conversions to Islam would only invite trouble, Deputy Prime Minister Najib Razak said.

BUSINESS TIMES

-- Malaysia will miss this year's target of 22.5 million tourist arrivals because of the higher cost of promotions, stiff competition from other destinations and domestic uncertainties, Tourism Malaysia Director-General Mirza Mohammad Taiyab said.

-- Malaysia could become the first Asian country to have a voluntary trade deal with the European Union for timber and wood-based products by the end of the year, the head of the European Commission delegation, Vincent Piket said.

THE EDGE FINANCIAL DAILY (www.theedgedaily.com.my)

-- Rising inflation and slower GDP growth remain the twin threats to Malaysia's economic well-being despite the easing of commodity prices, in particular that of crude oil, economists and analysts said.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- Universal Cable Bhd expects to benefit from the nation's mega projects, possibly the Second Penang Bridge and the Iskandar Malaysia projects in Johor, after it was awarded a portion of the 12.48 billion ringgit Ipoh-Padang Besar double tracking project, Managing Director Tan Kok Hong said,

-- The International Shariah Research Academy for Islamic Finance, a newly established body by Malaysia's central bank, will not become a standard-setting body, says its head Mohamad Akram Laldin.

THE SUN (www.sun2surf.com)