PRESS DIGEST - Malaysia - July 7

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)

-- Indonesia will lift its ban on maids from being employed in Malaysia by next month, if talks to resolve outstanding problems are successful, Human Resources Minister S. Subramaniam said.

-- The move by Malayan Banking Bhd (Maybank) (MBBM.KL) to offer the lowest credit card interest rate in the country may spark a price war among banks, but any such move should weigh the unsecured risk factor of such instruments, analysts said.

BUSINESS TIMES (www.btimes.com.my)

-- Property developer Bandar Raya Developments Bhd (BRDS.KL) is optimistic of prospects for subsidiary Mieco Chipboard Bhd (MIEC.KL), but may sell the chipboard maker if there is a good enough offer, Mieco chairman Mohamed Moiz JM Ali Moiz said.

-- The new FTSE Bursa Malaysia KLCI (FBMKLCI), which replaced the old benchmark on Monday, closed 0.6 percent down as renewed concern over the global economy prompted investors to take profit from earlier gains, analysts said.

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

-- The Federal government will not interfere in the Kampung Lorong Buah Pala issue in Penang, Prime Minister Najib Razak said.

-- The High Court ruled on Monday that a judge cannot play the role of executioner and set aside the caning sentence imposed on an armed robber, High Court judge Mohamad Zabidin Mohd Diah said.

THE EDGE FINANCIAL DAILY (www.theedgemalaysia.com)

-- The Port Klang Authority (PKA) has been instructed by the Ministry of Finance (MoF) to resume the payment of 660 million ringgit owing or due by the end of the month to Kuala Dimensi Sdn Bhd-related (KDSB) companies for work done at the Port Klang Free Zone, PKA chairman Lee Hwa Beng said.

-- The new 30-stock FBM KLCI started off on a lacklustre note on Monday, in line with most regional markets weighed down by weaker commodity prices and the downbeat US employment data released last week.

THE MALAYSIAN RESERVE (www.themalaysianreserve.com)

-- UMW Holdings Bhd's (UMWS.KL) $170 million (602.78 million ringgit) contract, called Naga 2, from PCPP Operating Company Sdn Bhd, which is 40 percent-owned by Petronas Carigali Sdn Bhd, has been terminated, UMW Holdings said in a statement.

THE SUN (www.sun2surf.com)