PRESS DIGEST - Malaysia - Sept 18

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

ALL NEWSPAPERS

-- Prime Minister Abdullah Ahmad Badawi on Wednesday swapped the finance and defence cabinet portfolios with Deputy Prime Minister Najib Razak as part of the 2010 succession plan.

THE STAR (www.thestar.com.my)

-- UBG Bhd (UBGB.KL) will now look at new deals involving the energy, water and oil and gas businesses after completing the takeover of Putrajaya Perdana Bhd (PUTA.KL) and Loh & Loh Corp Bhd (LOHC.KL), UBG Deputy Chairman Syed Ahmad Alwee Alsree said.

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

-- Prime Minister Abdullah Ahmad Badawi refused to give hints of further reduction in fuel prices, saying the government would be paying less in subsidy if the world crude oil prices continued to go down.

BUSINESS TIMES

-- Kuwait's Al-Aqeelah Group will invest $400 million to $500 million (1.4 billion ringgit to 1.7 billion ringgit) over a period of time to set up an international aviation school in Malaysia in response to growing demand for industry personnel, Aqeeq Aviation President Abdullah Bastaki said.

-- Life insurer American International Assurance Bhd (AIA) has assured policyholders in Malaysia that it is not impacted by the near insolvency of holding company American International Group Inc (AIG), AIA Chief Executive Officer Khor Hock Seng said.

THE EDGE FINANCIAL DAILY (www.theedgedaily.com)

-- The stock market closed at its lowest in 16 months on Wednesday as investors grapped with the country's political uncertainties and the lingering impact of Wall Street's financial sector meltdown.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- Car assembler Naza Group is in talks with a foreign partner to explore the possibility of introducing fuel efficient hybrid vehicles to the Malaysian market, group Executive Chairman SM Nasaruddin SM Nasimuddin said.

UTUSAN MALAYSIA (www.utusan.com.my)

-- Sabah Progressive Party (SAPP) on Wednesday withdrew from the Barisan Nasional (National Front) three months after announcement of no-confidence in Prime Minister Abdullah Ahmad Badawi.

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