As per the Wednesday news reports, a JV company is to be announced by Malaysia and Saudi Arabia's PetroSaudi International, in order to invest $2.5 billion in Malaysia. The aim of the venture, with government-owned 1Malaysia Development, is to concentrate on renewable energy.

As for now, the details regarding the investment split or when and where the fund would invest are not available.

1Malaysia Development CEO Shahrol Halmi, expressed, "The joint venture is set to further increase foreign direct investment from the Middle East, in particular Saudi Arabia."

In past few years, Malaysia has tried hard to lure investments, while recording negative direct investment flows since the second quarter of 2008.

As per the economists, Malaysia is suffering from its biggest budget deficit this year since 1987, and requires reducing government development spending, and bolstering the lacklustre private sector investment.

It has appeared the government is mulling to follow its 2011-15 economic plan, to slash government development spending by 10 percent to 180 billion ringgit ($51.65 billion).

As per speculations, Malaysia's investment ratio is the second lowest in Asia, after the Philippines.