The Dynamics of Global Rubber Supply Expansion in the Malay Peninsula: The Power of New Theory of Agriculture Knowledge and the Challenges.

Abstract

This study examines the economic history of para rubber as a commercial crop, tracing its development to supply raw materials for the early automobile industries in Europe and the United States. Before the 20^th century, British rubber production thrived on the Malay Peninsula. By 1910, driven by the surging demand for rubber, many British investment companies poured into the plantation sector (James, H., 2005). This growing demand soon expanded cultivation into Siam. In 1900, Phraya Ratsadanupradit contacted the Siamese government to initiate diplomatic talks with the British to import rubber seeds. Over the past 126 years since that beginning, Thailand has developed into the world’s leading supplier of natural rubber for the global automotive industry. However, this expansion transformed rainforests into agricultural land, altering ecosystems, forests, soil, and water resources for economic growth. These plantations have now gone through four replanting cycles, with trees replaced every 25 years. Despite being the world's top producer, Thailand faces a major challenge: rubber farmers earn insufficient income to sustain their livelihoods. The increase in global rubber supply has driven down prices, while inflation has worsened household poverty. To mitigate these economic risks, this study suggests applying the New Theory Agriculture. By promoting efficient land use and crop diversification, rubber farmers can reduce market risks, build self-reliance, and secure long-term economic resilience.