Malaysia, Saudi Arabia set up $2.5 investment fund

Malaysia and Saudi Arabia on Wednesday said they would establish a
2.5 billion dollar partnership to invest in economic and energy
projects here. The joint-venture company is a collaboration between
government development and investment firm 1 Malaysia Development
Berhad (1 MDB) and Saudi Arabia's PetroSaudi International Limited
(PSI). In a statement the companies said the fund would target the
renewable energy sector and " long-term sustainable economic
development" projects in Malaysia. It is also aimed at attracting
further investment from the oil-rich Middle East region to Malaysia,
the statement said. It did not specify details of each company's
investment in the joint venture or where the fund would invest.
Foreign investment in Malaysia has plummeted this year as a result of
the global financial crisis. Its economy is expected to contract by
5.0 percent this year. It is targeting about 30 billion ringgit
(8.65 billion dollars) worth of investments, down from 62 billion
ringgit last year amid a tough investment climate.