PRESS DIGEST - Malaysia - Nov 5

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

ALL NEWSPAPERS

- The Public Accounts Committee (PAC) has recommended that the police and Malaysian Anti-Corruption Commission investigate former transport minister Chan Kong Choy and former Port Klang Authority general manager Phang Oi Choo in connection with the Port Klang Free Zone project.

THE STAR (www.thestar.com.my)

- The capital market is set to get its version of the banking sector's Financial Mediation Bureau (FMB).

- Telenor ASA will not divest its Asian assets, such as DiGi.Com Bhd (DSOM.KL), to fund its massive expansion into India, said Telenor Asia president Sigve Brekke.

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

- Beginning next year, the Federal Government will pay compassionate funds to Kelantan based on the state's offshore oil production revenue, Prime Minister Najib Razak said.

BUSINESS TIMES (www.btimes.com.my)

- The government may do away with the real property gains tax based on feeback from industry players, said Deputy International Trade and Industry Minister Mukhriz Mahathir.

- Pahang has bagged a $80 million ($1 = 3.42 ringgit) investment from Singapore-based Eco Tower Sdn Bhd to set up a plant that will make wind towers, tall structures that produce electricity using the wind, Pahang Menteri Besar (chief minister) Adnan Yaakob said.

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

- It may be too early to say who will be the eventual top service provider for mobile data, but Norwegian firm Telenor ASA is confident its 49 percent-owned DiGi.Com Bhd (DSOM.KL) and the latter's rivals - Maxis Bhd and Celcom (M) Bhd - can fend off competition from new 3G and WiMAX licensees and continue to dominate the marketplace as the window to shake market positioning has closed.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

- Industrial and Commercial Bank of China, the country's biggest lender, will get a licence to open in Malaysia when Chinese President Hu Jintao visits from November 10-11 and a raft of commercial deals will be signed.

THE SUN (www.sun2surf.com)

- Prime Minister Najib Razak on Wednesday backed the Registrar of Societies (ROS)'s decision that Chua Soi Lek is the rightful Malaysian Chinese Association (MCA) deputy president, describing it as "purely legal" and according to the party constitution.

- Malaysia's near-term outlook shows a slow process of recovery, with real GDP projected to contract 2.3 percent this year before growing by 4.1 percent next year, the World Bank said.

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($1=3.400 Malaysian Ringgit)