PRESS DIGEST - Malaysia - June 6

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 stock market suffered its biggest daily drop in nearly three months on concerns that higher energy prices would hit company profits and slow economic growth.

BUSINESS TIMES (www.btimes.com.my)

- Despite the rise in power tariffs, Tenaga Nasional Bhd (TENA.KL) expects a smaller profit this year because the rate increase will only be enough to cover the high gas cost, Chief Executive Officer Che Khalib Mohamad Noh said.

THE STAR (www.thestar.com.my)

- Tenaga Nasional Bhd (TENA.KL) is finally getting the tariff hike it has been jock-eying for since last year but the national utility expects the increase to have a neutral impact on its cash position.

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

- Greening the economy through use of renewable fuels and fuel-efficient technologies will not only preserve the environment but generate new economic activity, Prime Minister Abdullah Ahmad Badawi said.

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

- Tenaga Nasional Bhd (TENA.KL) expects to rake in an additional 4.8 billion ringgit through its financial year ending August 31, 2009 from its tariff revision on July 1 but the utility will still see its earnings trimmed, said its President Che Khalib Mohamad Noh.

THE MALAYSIAN RESERVE (news@themalaysianreserve.com)

- Petroliam Nasional Bhd (Petronas) PETR.UL will be paying a total of 164 billion ringgit in gas subsidies for its buyers up to 2022 following the new subsidy structure announced Wednesday, its President Mohd Hassan Marican said.

THE SUN (www.sun2surf.com)

- Against a backdrop of public frustration and anger over the new subsidy plan, Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad on Thursday galvanised public support to help the government stem irrational price increases.

- Inflation is expected to exceed 5 percent this month as a result of fuel prices hike announced on Wednesday and rise to 4.2 percent from earlier estimates of 2.5 percent for the whole year, Bank Negara Malaysia Governor, Zeti Akhtar Aziz said.