Current issue of The Edge reported that The government is planning to develop the Southern Corridor of the peninsula under the soon-to-be unveiled Ninth Malaysia Plan (9MP) .
The first prong of the plan, with the largest federal government allocation of RM6 billion, will develop vast areas between the two existing links to Singapore. Included in these plans are the developments of the Bandar Nusajaya township and the waterfront city of Danga Bay, a development owned by Ekovest.
Shares price of Ekovest Bhd has improved marginally on Monday.
The south Johor development will be complemented by the "bullet train" project from Kuala Lumpur to Johor. This proposal was initially believed to have been mooted by the YTL Group. However, it is understood that Khazanah may lead this project.
Another facet of the 9MP will be the construction of the long-awaited second Penang Bridge. While the second bridge will fall under the 9MP, it will eventually become part of plans to develop the Northern Corridor
Sources say other than the direct beneficiaries such as Ekovest, the other possible winners in the 9MP would be those government-linked companies such as the UEM Group. UEM, almost 100% owned by Khazanah, will most likely lead the development of the bullet train and parts of the SJDA project.
Of course, the Bandar Nusajaya township is already owned by UEM subsidiary Bandar Nusajaya Sdn Bhd (formerly known as Prolink Development Sdn Bhd). Bandar Nusajaya is the ambitious township development in Gelang Patah, near Johor Baru, adjacent to the second link between Singapore and Malaysia launched in the heyday of the 1990s.
A key player in the Southern Corridor could also be Tan Sri Syed Mokhtar Al-Bukhary who controls the Port of Tanjung Pelepas, Johor Port and also Senai Airport.
Another UEM subsidiary, UEM Builders Bhd (formerly known as Intria Bhd), already owns the existing Penang Bridge. UEM Builders also has some experience in the construction of railways — admittedly a somewhat less salubrious experience.
The Edge further reported that Syarikat Prasarana Negara Bhd (SPNB) will extend the Putra and Star LRT (light rail transits) lines as well as construct a new line.
Shares price of UEM Builders Bhd has improve marginally on Monday. However, shares price of it holding company UEM World Bhd remain stagnant. UEM world Bhd, which also control CEMENT Industries of Malaysia Bhd (CIMA). CIMA shares price has rise to 3 year high .
Thus, it just a matter of time for UEM World Bhd shares price to rise.
Punter would remember how Renong (Now UEM World) and UEM ( Now UEM Builder) shares price increase from a few sen to more than Ten Ringgit in 1993 stock market bull run. While Malaysia stock market was one year behind the regional stock market. It is just the beginning of another bull run for UEM group of company. A once in 13 years opportunity you unable to miss.
Update:Ninth Malaysia Plan to revive construction
Analysts’ pick of gainers
Interest ahead of 9MP-Ekovest
TechnoratiTag:Business Commentary Economics Economy Malaysia Opinion Shares Stock Market
