PRESS DIGEST - Malaysia - June 3

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

ALL NEWSPAPERS

- Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad on Monday hinted that pump prices for petrol and diesel would go up in August.

BUSINESS TIMES (www.btimes.com.my)

- The Royal Dutch Shell Group is looking to invest some 10 billion ringgit in its oil and gas operations in Malaysia in the next five years, Shell Malaysia Chairman Saw Choo Boon said.

- Malaysia Airlines (MAS) (MASM.KL) has warned that its net profit for the second quarter would be lower as the national carrier grapples with record-high fuel prices, MAS Managing Director Idris Jala said.

THE STAR (www.thestar.com.my)

- Prime Minister Abdullah Ahmad Badawi said the new fuel subsidy scheme would be implemented immediately after Cabinet approves the proposal by the cabinet committee on inflation.

- The government is lifting the ceiling price on cement effective Thursday to ensure development projects in the country are not delayed due to the tight cement supply, Prime Minister Abdullah Ahmad Badawi said.

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

- Saving energy, water and other resources should also be practised in the office as part of a lifestyle change to adapt to rising prices, Prime Minister Abdullah Ahmad Badawi said.

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

- The CIMB Group on Monday proposed a merger of its 63.4 percent owned Indonesian unit, PT Bank Niaga, with Khazanah Nasional's PT Bank Lippo, in a deal that is valued at 8.6 billion ringgit, CIMB Group Chief Executive Nazir Razak said.

THE MALAYSIAN RESERVE (news@themalaysianreserve.com)

- The minimum investment for structured investment offered by banks, currently set between 100,000 ringgit and 250,000 ringgit, may be reduced further if the regulators accept a proposal by the banking sector to further liberalise that particular segment of the financial services industry, a banking source said.

THE SUN (www.sun2surf.com)

- The Anti-Corruption Agency and Public Complaints Bureau's probe into allegations of a 40 million ringgit land-grab in Kunak, Sabah, is said to focus on two major "players": a senior politician and a high-ranking police official.

- Malaysia Airlines (MAS) (MASM.KL) is taking tough cost-cutting measures, including freezing recruitment and reducing the budget of every division by 10 percent due to the gloomy outlook for the aviation industry caused by rising jet fuel prices, said Managing Director Idris Jala.

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