PRESS DIGEST - Malaysia - July 4

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

ALL NEWSPAPERS

- Deputy Prime Minister Najib Razak reiterated that he never knew Altantuya Shaariibuu as another claim arose on Thursday linking him with the murdered Mongolian woman.

- Trading on Bursa Malaysia was suspended for a full day on Thursday due to technical problems.

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

- Malaysia is safe and stable, Prime Minister Abdullah Ahmad Badawi said as he calmed jitters over the country's political outlook.

BUSINESS TIMES (www.btimes.com.my)

- Budget 2009 will be one that prepares Malaysia for a potential crisis, given the looming prospect of a global recession, Second Finance Minister Nor Mohamed Yakcop said.

- Independent power producers (IPPs) fear that the windfall tax imposed on them by the government will have a negative impact on the local bond market, as well as the investment community at large, an industry source said.

THE STAR (www.thestar.com.my)

- T. Rowe Price Associates Inc ceased to be a substantial shareholder in AirAsia Bhd (AIRA.KL), which has seen its shares come under selling pressure in recent weeks due to surging fuel prices.

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

- Bursa Malaysia may come under heavy selling pressure today (Friday) following an unprecedented one-day trading halt due to "multiple hardware failure" and technical glitch that caused the crash of the equities trading platform on Thursday.

- The two men fighting to be Malaysia's next prime minister stepped up their attacks against each other on Thursday as rumours swirled about a crackdown by security forces.

THE MALAYSIAN RESERVE (news@themalaysianreserves.com)

- Telekom Malaysia Bhd (TM) (TLMM.KL) has estimated that the telecommumnications infrastructure investment for the largest South-East Asia integrated development project, Nusajaya would amount to 600 million ringgit over the next 10 years.