Contents :

We refer to your letter dated 2 August 2000 on the above article and our earlier announcement of even date.

Please be informed that the Company is not in discussion with Petronas on the matter.

Query Letter Contents :

We refer to the above news article appearing in the Business Times, pages 1
and 12, on Wednesday, 2 August 2000, a copy of which is enclosed for your
reference.
In particular, we would like to draw your attention to the underlined sentences
which are reproduced as follows:-
" NATIONAL oil corporation Petroliam Nasional Bhd (Petronas) is likely to be
the 'government-linked body' to buy into Malaysian Airline System Bhd (MAS)
concurrently with the entry of Qantas Airways Ltd as a significant shareholder
of the national carrier."
" Naluri Bhd is said to be working on disposing of its 29.9 per cent stake in
MAS ... "
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentences after due and diligent enquiry with all the directors,
substantial shareholders and all such other persons reasonably familiar with
the matters about which the disclosure is to be made in this respect. In the
event you deny the above sentences or any other part of the above reported
article, you are required to set forth facts sufficient to clarify any
misleading aspects of the same. In the event you confirm the above sentences or
any other part of the above reported article, you are required to set forth
facts sufficient to support the same.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.

Yours faithfully


LISA LAM
Senior Manager, Listing Operations
LL/ASL/ZOOS
c.c. Securities Commission