Federal counsel Alice Loke said the application was dismissed as the publisher could be adequately compensated in the event they succeed in the judicial review.
She said judge Datuk Asmabi Mohamad felt that the publisher would not suffer irreparable harm if the stay was not granted.
The judge also said that the publisher's credibility would be vindicated if they won the case.
"The publisher also did not show special circumstances to grant the stay," she told reporters after the judge made the ruling in chambers.
Lawyer Darryl Goon, who appeared for the publisher, said he was disappointed with the outcome and would take further instruction from the client.
The judicial review will be heard on September 7.
On July 27, the publisher filed the leave application and was allowed on August 5.
The Home Ministry on July 24 suspended the publishing permit of both publications for three months from July 27.
A letter from the ministry stated that the papers' coverage of the 1Malaysia Development Berhad (1MDB) scandal was "prejudicial or likely to be prejudicial to public order, security or likely to alarm public opinion or is likely to be prejudicial to public and national interest".
This is the first time a publisher is seeking legal recourse following the suspension for its coverage of debt-ridden 1MDB.
Ministry secretary-general Datuk Alwi Ibrahim in a statement on July 24 said the suspension of the publications was made after the ministry had scrutinised their reports on 1MDB and the reply to the show-cause letters issued earlier.
The ministry gave three reasons for suspending the publications, which it said, violated Section 7(1) of the Printing Presses and Publications Act (PPPA) 1984.
It said the headings and reporting by the two publications had raised questions and created negative public perceptions towards 1MDB, a Finance Ministry-owned firm.
The reports also implicated the government and national leaders, the ministry said.
Secondly, it also found the reports to be based on doubtful and unverified information, which it said might alarm public opinion and might be prejudicial to public order and national interest.
Thirdly, the ministry said the 1MDB issue was being investigated by a special task force and it was therefore inappropriate for reportage on the issue to create negative perceptions.
- TMI
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