PRESS DIGEST - Malaysia - Aug 5

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

ALL NEWSPAPERS

-- Infrastructure group MMC Corp Bhd (MMCB.KL) announced on Monday a 2.2 billion ringgit deal that, in one stroke, will strengthen both its logistics and international utilities businessess.

THE STAR (www.thestar.com.my)

-- The Anti-Corruption Agency is investigating how a little-known IT company with little experience became the local partner in the one billion ringgit project to upgrade the Royal Malaysian Police's communication systems from analogue-based to digital, sources said.

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

-- Prime Minister Abdullah Ahmad Badawi has expressed regret over the reappearance of cracks on the Middle Ring Road 2 in Kepong, saying it would only compound public anger against the government.

BUSINESS TIMES

-- Foreign fund managers are continuing to cut their exposure in Malaysia, with most saying that while the economnic fundamentals remain relatively sound, the political outlook is a big concern.

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

-- The government, in a bid to alleviate the people's hardship caused by the rising cost of living, has proposed to toll road operators in the Klang Valley to reduce their rates, sources said.

-- Malayan Banking Bhd (Maybank) (MBBM.KL) could suffer total losses of up to 3.5 billion ringgit if it is forced to sell down the 20 percent block in PT Bank Internasional Indonesia Tbk (BII) within two years, sources said.

THE SUN (www.sun2surf.com)

-- Preliminary works are to begin today (Tuesday) on the cracks which appeared on Pillar 28 of the Middle Ring Road 2 (MRR2) elevated highway in Kepong, as several groups clamoured for an independent probe into the project to restore public confidence, Deputy Director-General of Public Works I Mohamad Husin said.

-- Hot meal boxes, currently offered on selected Malaysian Airlines (MAS) (MASM.KL) flights, are likely to bring in 50 million ringgit additional revenue annually, its Managing Director Idris Jala said.

UTUSAN MALAYSIA (www.utusan.com.my)

-- UMNO's longest-serving Wanita Chief, Rafidah Aziz, has given notice that she will step down by mid-2009 and hand over the leadership to her deputy Shahrizat Abdul Jalil.

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