PRESS DIGEST - Malaysia - Oct 26

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

THE STAR (www.thestar.com.my)

- The government could be losing billions of ringgit every year through excessive payments for contracts and procurements for a wide range of things ranging from water tunnels to IT contracts and purchase of computers, Second Finance Minister Ahmad Husni Hanadzlah said.

- The government will issue an order to cap the real property gains tax (RPGT) at five percent, Second Finance Minister Ahmad Husni Hanadzlah said.

- Maxis Bhd, which is launching the prospectus for its initial public offering on Wednesday, announced on Sunday the appointment of Raja Arshad Raja Tun Uda as its chairman.

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

- United Malays National Organisation (UMNO) will not enter into any formal discussion with Pan Malaysian Islamic Party (PAS) until the opposition party is united in wanting to negotiate for the sake of unity of the ummah, Prime Minister Najib Razak said.

BUSINESS TIMES (www.btimes.com.my)

- NAZA TTDI, the property arm of the Naza Group, is set to clinch a 14 billion ringgit ($4.14 billion) property development project on a 24.2ha parcel of land near the Malaysia External Trade Development Corp (Matrade) headquarters in Kuala Lumpur, sources said.

- KPJ Healthcare Bhd (KPJH.KL), the healthcare unit of Johor Corp (JCorp), plans to open at least two new hospitals a year to further strengthen its leading market position, said its managing director Siti Sa'diah Sheikh Bakir.

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

- Stock picking will be the order of the day in the next few trading days as investors seek to digest the implications of Budget 2010 which was announced last Friday as well as attempt to determine the beneficiaries of the government's proposals, or otherwise.

- Employers are still cautious about hiring as they are unsure of the sustainability of th economic recovery, said Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

- Property prices could be hit in the near to medium term on an anticipated flurry of sales transaction before January 1 next year, when the real property gains tax (RPGT) is reintroduced, said property experts.

THE SUN (www.sun2surf.com)

- All ministry secretaries-general and directors-general will be made accountable for the abuses, negligence, mismanagement and excesses conducted by and within their respective ministries and departments, director-general of public services, Ismail Adam said.

- The crisis-induced changes in employment, income, and prices not only directly affect households' current standards of living but they also have a major impact on household investment in human development, said the Malaysian Institute of Economics Research.

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