SECTION I; Overseas News; Pg

September 5, 1986, Friday

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 313 words

HEADLINE: Malaysian Chinese Party's New Leader

BYLINE: Wong Sulong, Kuala Lumpur

BODY: Mr Ling Liong Sik, 43, a medical doctor, has taken over the presidency of the faction-torn Malaysian Chinese Association, the largest Chinese political party in Malaysia, from Mr Tan Koon Swan who resigned after he was jailed by a Singapore court. The MCA central committee which accepted his resignation has also promoted Mr Lee Kim Sai as the party's deputy president. Mr Ling, Mr Lee and Mr Chan Siang San are MCA representatives in the 24-member Malaysian Cabinet. Mr Tan, who had been MCA president for only nine months, was given a two-year jail sentence by the Singapore High Court last week for his part in stock market manipulation which led to the collapse of Pan- Electric Industries, the Singapore salvage, property and hotel group, last December. Observers say the new MCA leaders will find it tough going as they lead the demoralised and financially indebted (as a result of the recent general elections) MCA into the Malaysian coalition Government, now dominated by the United Malays National Organisation of Dr Mahathir Mohamed, Prime Minister. Mr Ling could also face problems in confirming his leadership at the MCA party elections next year because he lacks grass-root support. This is aggravated by his English-educated background, when the bulk of the party's membership is Mandarin-speaking. Meanwhile, Miss Penny Chang, Mr Tan's wife, and Mr Loong Yoke Pin, a close business associate, have taken over the management of Grand United Holdings and Supreme Corporation, two publicly listed companies controlled by Mr Tan. Mr Loong, who was one of the three businessmen who put up the S Dollars 40 m (Dollars 20 m) bail for Mr Tan during his recent trial, has been appointed GUH executive chairman, while Miss Chang was appointed Supreme's managing director. Trading in the two companies has been suspended since the Pan-Electric crisis.