PRESS DIGEST - Malaysia - Dec 28

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

THE STAR

- Federation of Malaysian Manufacturers President, Yong Poh Kon said the manufacturing sector had been exposed to tremendous inflationary pressure in the past 12 months, chiefly from spiralling commodities prices.

- Khazanah Nasional Bhd plans to merge its two Indonesian banks to comply with the country's new regulations.

NEW STRAITS TIMES

- Victims of the now receding floods can look forward to receiving financial assistance from the government next month, Deputy Prime Minister Najib Razak said.

BUSINESS TIMES

- Permodalan Nasional Bhd (PNB) is studying the option of investing its trust funds overseas, but has not arrived at any firm decision, PNB President Hamad Kama Piah Che Othman said.

THE EDGE FINANCIAL DAILY

- Khazanah Nasional Bhd and CIMB Group have decided to merge Lippo Bank and PT Bank Niaga of Indonesia to comply with Bank Indonesia's single-presence policy.

THE MALAYSIAN RESERVE

- Seagate Technology Inc plans to invest 1.7 billion ringgit over the next five years to expand its operations in Malaysia by enhancing technology capabilities at its Penang plant as well as developing a new substrate facility in Johor, its Senior Vice President of global disc storage operations David Mosley said.

- The Securities Commission and leaders of the stockbroking and remisiers' associations could not come to a full agreement over the new brokerage fees for trading of securities during a two-hour meeting on Thursday, said President of the Remisiers' Association, Sam Ng.

THE SUN

- In handing down what is widely seen as an equivocal decision on Thursday, the Federal Court avoided answering the question which court, civil or Syariah, has exclusive jurisdiction to hear cases involving non-Muslim spouses whose partners have converted to Islam.

- Biotechnology-based Bioteam Sdn Bhd is set to market its scientific and consumer products in the U.S. market, Chief Executive Officer, Riad Abdul Malek said.

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