Chinese daily Nanyang Siang Pau could face action - including the possibility of being suspended - for publishing a report critical of Umno delegates who attended the party's meet last week.

Industry sources are certain the newspaper would be reprimanded despite Deputy Internal Security Minister Fu Ah Kiow and Nanyang Siang Pau editor-in-chief Cheng Khee Chien stating otherwise.

When contacted today, Fu termed this as 'mere rumours'.

However, sources said the front-page report, published on Sunday, had irked Umno leaders and the daily could be slapped with a warning, suspension, or see its editors hauled up.

The report featured the comments of several prominent leaders of the Chinese community who criticised the Umno delegates for 'going overboard' and 'fanning racial sentiments'.

The nine leaders interviewed by the daily include MCA president Ong Ka Ting, MCA Youth chief Liow Tiong Lai, Gerakan president Dr Lim Keng Yaik, Geakan Youth chief Mah Siew Keong, Parliamentary Opposition Leader Lim Kit Siang, Parti Keadilan Rakyat (PKR) information chief Tian Chua, The President of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) William Cheng and Federation of Chinese Associations of Malaysia Lim Gait Tong.

Litmus test

It learnt that Nanyang Siang Pau 's fate could be decided at tomorrow's cabinet meeting.

If action is taken, sources predicted that it would be a two-week suspension similar to what was imposed on Guang Ming Daily in February over the Prophet Muhammad cartoon fiasco.

They said like Guan Ming , the authorities might decide to suspend Nanyang Siang Pau's evening edition alone.

This would not pose a major problem for the daily as the edition's circulation is low, they pointed out.

"This will be a litmus test for the daily's new owner Tiong Hiew King and the MCA president. How they will use their clout to overcome this crisis remains to be seen," said the sources.

MCA, via its investment arm Huaren Holdings, holds a 20 percent stake in Nanyang Press Holdings, which also publishes China Press.

Last month, media baron Tiong, who owns two other Chinese dailies, the best selling Sin Chew Jit Poh and Guang Ming , acquired another 20 percent shares from Huaren bringing his total stake in Nanyang Holdings to 44 percent.

Speculations of a Chinese newspaper landing in trouble has been rife after Deputy Internal Security Minister Mohd Johari Bahrum issued a warning on Saturday.

"There is a Chinese newspaper which raises issues that can create alarm among the people," he said, adding that the government would not hesitate to take stern action against any publication containing seditious material.