PRESS DIGEST - Malaysia - Sept 3

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

ALL NEWSPAPERS

-- After two postponements, the government finally awarded Telekom Malaysia Bhd (TM) (TLMM.KL) the big-budget 11.31 billion ringgit high-speed broadband project, virtually closing the door on a competing bid by a consortium powered by the Pahang state government.

THE STAR (www.thestar.com.my)

-- Astro All Asia Networks Plc's (AAAN.KL) trade licensing agreement with Lippo group's PT Direct Vision, which allowed the latter to use the "Astro" brand, expired on Monday but Astro is keen to continue working with the Indonesian firm, an Astro official said.

-- Actis, the private equity investor that was involved in the management buyout of Unza Holdings Bhd in 2004, has backed the management buyout of Teknicast, one of the country's largest manufacturers of aluminium die-cast products, Actis Director Ching Lee said.

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

-- When non-Muslims understand more about Islam, they will be more tolerant towards Muslims and the religion itself, Prime Minister Abdullah Ahmad Badawi said.

BUSINESS TIMES

-- Ranhill Bhd's (RANH.KL) corporate credit rating was put on negative watch by rating agency Standatd & Poor's (S&P) after the engineering group reported a net loss last year, S&P said in a press released on Tuesday.

THE EDGE FINANCIAL DAILY (www.theedgedaily.com)

-- The ringgit, which fell to an 11-month low on Tuesday, will take a prolonged hit if the country's widening budget deficit is left at its current rate.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- Car assembler Detroit Electric Ltd will invest $300 million (about one billion ringgit) over the next five years in Malaysia if talks with Proton Holdings Bhd (PROT.KL) on various types of cooperation are successful, said its Chairman Albert Lam.

THE SUN (www.sun2surf.com)

-- United Malays National Organisation (UMNO) on Tuesday apologised for the "unwarranted" statement made by its Bukit Bendera division cief Ahmad Ismail, who described non-Malays as immigrants, and indicated that the party will act against him, Deputy Prime Minister Najib Razak said.