PRESS DIGEST - Malaysia - June 26

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

ALL NEWSPAPERS

- Malaysia's deputy prime minister strongly denied a blogger's allegations that his wife was involved in the murder of a Mongolian women, saying it was a "total lie" and "fabricated garbage."

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

- A large scale operation on illegal immigrants will be conducted in the eastern state Sabah on Borneo island and security presence boosted in the area as a precaution, the deputy prime minister said.

BUSINESS TIMES (www.btimes.com.my)

- TM International TMIT.KL, a unit of Telekom Malaysia (TLMM.KL) has acquired a 15 percent stake in India's Idea Cellular Limited, for 5.53 billion ringgit or 11.91 ringgit per share, in a bid to expand its presence in India, the firm said in a statement.

- IGB Corp (IGBS.KL) plans to spend 2 billion ringgit over the next 5 to 6 years to develop a hotel chain in the Asia-Pacific region, the firms managing director said.

THE STAR (www.thestar.com.my)

- The government wants banks to halve their current credit card charges by 0.5 percent for petrol stations in the light of the recent fuel price hike increase, Domestic Trade Minister Shahrir Samad said.

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

- Gamuda (GAMU.KL) Managing Director Lim Yun Ling has formalised his employment with the Malaysian builder by signing a five-year contract with the firm, the company said.

- Malaysian builder Loh & Loh Corporation (LOHC.KL) is looking at opportunities to build hydroelectric dams, infrastructure and water-related projects especially in the Sarawak Corridor of Renewable Energy, its managing director said.

THE MALAYSIAN RESERVE (news@themalaysianreserves.com)

- Sime Darby (SIME.KL), the largest listed planter in the world, aborted plans to take up a stake in Bakun hydroelectric dam order Sarawk Hidro Sdn Bhd, citing the project's economics as inconsistent with the firm's business strategy.

UTUSUAN MALAYSIA

- The government will pay out 100 million ringgit to low-income earners living in the city through a special scheme, the country Second Finance Minister said.

** Looking for more information from local sources? Reuters Business Briefing has 13 Malaysian sources including Business Times Malaysia. For details of the product please call your local help desk (PHONE/HELP). ($1=3.275 Malaysian Ringgit)