PRESS DIGEST - Malaysia - June 30

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

ALL NEWSPAPERS

- The de facto opposition leader, Anwar Ibrahim, who was accused of sodomising an aide, has sought shelter at the Turkish Embassy in Kuala Lumpur claiming he had received death threats.

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

- The Barisan Nasional (National Front) and United Malays National Organisation (UMNO) have nothing to do with sodomy allegations against de facto opposition leader Anwar Ibrahim, Prime Minister Abdullah Ahmad Badawi said.

BUSINESS TIMES (www.btimes.com.my)

- Middle East lender Al Rajhi Bank Malaysia is set to get an International Islamic Banking licence, which will allow it to ride on the parent group's huge balance sheet to do large non-ringgit deals, its Chief Executive Officer Ahmed Rehman said.

- Malaysian investors with a long-term strategy in Vietnam should not be shaken by its current economic woes, Malaysian investment bankers said.

THE STAR (www.thestar.com.my)

- Construction giant Gamuda Bhd (GAMU.KL) expects lower margins for the 12.5 billion ringgit double-tracking rail project owing to the skyrocketing crude oil and raw material prices, said senior group general manager of investor relations, Clarence Boudville.

- Manufacturers of key building materials like steel bars and cement are believed to be holding back their stocks to take advantage of the current volatile commodity prices, so that they can sell them at higher prices.

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

- Malaysian AE Models Holdings Bhd, a company that designs, constructs and fabricates automated handling systems has turned out to be an unfancied beneficiary of the commodity boom.

THE MALAYSIAN RESERVE (news@themalaysianreserves.com)

- HSBC Amanah, through its Kuala Lumpur-based Islamic finance practice for the Asia Pacific, is in the running to play a leading role in Indonesia's proposed $1 billion (3.26 billion ringgit) global sukuk issuance, its Managing Director Yakub Bobat said.

- Local financial institutions have begun to raise fixed-interest rates for mortgages and hire purchase loans in anticipation of an increase in the overnight rate policy by Bank Negara Malaysia, sources said.

THE SUN (www.sun2surf.com)

- Moody's Investors Service has reaffirmed the negative outlook for IOI Corp Bhd (IOIB.KL), Moody's said in a statement.

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