20100519 1003 Global Economic News.

1Malaysia Development Bhd (1MDB) will lead the development of most of the government land, particularly in the Klang Valley, with a view to ensuring returns to the government are maximised, said sources. 1MDB set up with RM5bn raised from the capital markets.

• It will partner foreign sovereign wealth funds such as the Qatar Investment Auhtority (QIA) in drawing up the masterplan and putting up the initial infrastructure for the property development. Considering the cost of borrowing is 5.75% for its 30-year papar, it is targeting an internal rate of return of 12-15% for the projects it undertakes. 
• To date, 1MDB has convinced foreign investors to pledge some US$17bn (RM55bn) although the money has yet to be invested in Malaysia, said source. (Financial Daily, BT)

A joint venture between 1Malaysia Development Bhd (1MDB) and PetroSaudi International Ltd (PSI) has invested the bulk of its US$2.5bn (RM8.1bn) fund in energy projects all over the world, such as Venezula and Europe. The source declined to identify these projects. (BT)

Western Digital Corp will invest US$1.2bn (RM3.86bn) in Malaysia over the next five years, Prime Minister’s Official said. It will expand its manufacturing and research and development facilities in the country. (Malaysian Reserve)