Malayan Rubber Policy: Development and Anti-Development during the 1950s

Abstract

The decade of the 1950s constituted a turning-point in the history of Malayan rubber. This was marked by a changed world rubber market, along with incipient changes in Malayan economic aspirations and policies. Internationally, the creation of a large synthetic rubber industry in the main consuming country, the United States, posed a challenge to the competitive position and long-run prospects of Malayan plantation rubber. While coping with this challenge, the rubber industry, as the mainstay of the Malayan economy, had to simultaneously satisfy emergent claims for domestic development. Indeed, Malayan rubber was itself confronted with two coterminous developmental issues: its own internal development towards more efficient forms of production; and the provision of a resource base for the development of other economic and social sectors. By way of response to these cumulative challenges, a transformation occurred with respect to the government's role in Malaya's rubber economy, with rubber emerging as the lynchpin of an evolving development strategy. In the process, the Malayan rubber plantation industry was to undergo a fundamental and wide-ranging structural transfiguration.