PRESS DIGEST - Malaysia - July 9

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

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

- Soaring food and fuel prices could destabilise developing countries, the prime minister said, as he urged the world's leading Muslim nations to rapidly step up production.

BUSINESS TIMES (www.btimes.com.my)

- Eng Teknologi Holdings Bhd (ETHB.KL: Quote, Profile, Research) - Malaysia's largest hard disk drive components manufacturer by revenue and one of the biggest in Southeast Asia - could be a privatisation target by private equity funds, analysts said.

THE STAR (www.thestar.com.my)

- The citizens of Malacca and Penang rejoiced as they welcome the inscription of their state capitals as World Heritage Sites.

- The government is expected to take a carrot-or-stick approach to re-negotiate with independent power producers (IPPs) on their power purchase terms, an analyst said.

- The construction sector is faling along with the rest of the market but two stocks within the sector that have defied gravity are Putrajaya Perdana Bhd (PUTA.KL: Quote, Profile, Research) and Loh & Loh Corp Bhd (LOHC.KL: Quote, Profile, Research), analysts said.