PRESS DIGEST - Malaysia - July 3

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

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

- The much-awaited judicial reforms will take off with the setting up of a Mediation Act, which would help clear the back-log of civil cases, Minister in the Prime Minister's Department Zaid Ibrahim said.

- The Selangor government is going ahead with the appointment of Ampang Jaya councillors on Tuesday despite the possibility of three of them having criminal backgrounds, Menteri Besar (Chief Minister) Abdul Khalid Ibrahim said.

BUSINESS TIMES (www.btimes.com.my)

- SP Setia Bhd (SETI.KL), Malaysia's most valuable property developer, plans to build its first retail mall for 750 million ringgit as part of plans to have more commercial assets, group Managing Director Liew Kee Sin said.

- The Malaysian stock market plunged to a fresh 2008 low on Wednesday as political uncertainties and rising inflation spooked investors, mainly foreign, into sell mode for a fifth straight trading day, analysts said.

THE STAR (www.thestar.com.my)

- The Selangor Anti-Corruption Agency (ACA) has found grounds for a case against a former officer with the Menteri Besar's office in relation to the solicitation of funds for the 100-day-in-office celebrations, Menteri Besar (Chief Minister) Khalid Ibrahim said.

- The KL Composite Index (KLCI) on Wednesday fell to a 15-month low, eclipsing the previous bottom seen on March 10 following the general election.

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

- The cost of building the Second Penang Bridge now stands at 4.585 billion ringgit and may keep rising and top five billion ringgit given the escalation in raw material prices, according to the project's main contractor UEM Group Bhd.

THE MALAYSIAN RESERVE (news@themalaysianreserves.com)

- The Low Yat group, which pulled out of Penang after alleging bureaucratic red tape practised by the previous state government in mid-2005, is returning to the island to revive its hotel and four other major property investments worth hundreds of millions of ringgit.

- Property developer SP Setia (SETI.KL), via its subsidiary Banda Setia Alam Sdn Bhd, on Wednesday set up a company with an Australian-based wholesale real estate development fund to develop a 750 million ringgit retail mall at its flagship township Setia Alam in Shah Alam.

THE SUN (www.sun2surf.com)

- The Anti-Corruption Agency (ACA) will investigate the police report lodged by Parti Keadilan Rakyat (People Justice Party) de facto leader Anwar Ibrahim, alleging that the Inspector-General of Police and the Attorney-General had fabricated evidence on his black-eye incident 10 year ago, ACA Director-General Ahmad said Hamdan said.

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