The Northern Corridor Economic Region

July 30 is a very significant date. Mark that down in you calendar or diary. Prime Minister Abdullah will be visiting Kedah, Perlis, Penang and Northern Perak to officially launch the next high impact 9MP project : the Northern Corridor Economic Region (NCER). So what is so significant about that?

For the Malaysian stock market that is currently starved of good news, this is BIG NEWS. The unraveling of the masterplan and showcase projects is fantastic fodder for analysts who will write to the seventh heaven about all the upsides of this government inspired economic plan.

NCER is a regional project to be stewarded by Sime Darby of Synergy Drive; likely to be funded in the main via private sector initiatives. The masterplan will be unveiled by Prime Minister Abdullah after which it will be implemented in a Sepang F1 fashion.

The infrastructure goodies are well-known by now especially for Penang-the RM1.1 billion Monorail Project will go to MRCB while the coaches will be supplied by SCOMI. UEM will build the new 24 km Second Penang Bridge costing some RM2.7 billion. There is a possibility of an LCCT to be built to serve a northern transport hub on the Seberang Perai side for Air Asia to come in to serve the northern region.

The setting up of food processing centres adjacent to the Penang Port container wharves which will undergo development and redevelopment deserves scrutiny. These food centres, especially the Halal Hubs to be set up in nearby Kedah and Perlis, will handle agricultural produce from Kedah, Perlis and Northern Perak.

Interestingly, Welli-Multi Corporation (WMC) is situated right smack pat in that area. Pure coincidence? WMC will be the focal point of the Halal Hub. With the Hadhari Cattle Industry, it will be leveraged to drive the halal food industry. Its biofuel facility to be set up will draw upon the resources of the palm oil smallholders in the northern region. How convenient.

Before I end, I wish to speculate on the make-over of WMC. This is my revision of the price trajectory for WMC. These are the triggers and milestones for its continued price increases.

• Annual Reports and quarter reports are vetted and approved by SC-very soon
• PM's unveiling of the NCER on 30 July
• Confirmation of purchase of shares by Siping Lishan Machinery Manufacturing Company of China at an agreed price higher than RM1.50 per share
  
• WMC buys the halal capsule producing machines from India
• WMC buys the Danish gelatin production machinery
• Purchase of shares by a GLC/Kedah State Investment agency
• Purchase of shares by a politically connected bumiputra entrepreneur
• Purchase of shares by an international investor form the Middle-east
• Reverse take-over of WMC by Hadhari Livestock Corporation and friendly parties

I am just a layman, not even a jurutilik saham. So if you are thinking of buying WMC, it's caveat emptor for you!

Anyway, for whatever it is worth, sit back and enjoy the WMC wayang kulit as it pans out.

Heartsong