Changing Resource-Based Manufacturing Industry: The Case of the Rubber Industry in Malaysia and Thailand

This chapter explores the development potential of the rubber industry in Malaysia and Thailand, which have been leaders in the production of natural rubber (NR) since the 20th century. The analysis of NR producing (upstream segment), processing (midstream segment) and rubber-based manufacturing (downstream segment) in Malaysia and Thailand will find the different timing and sectoral composition in the development of the rubber sector of two countries. It will become clear that in spite of such differences, the two countries share a development pattern in one important respect: The public sector played a crucial role in the development of the upstream segment, while the successful development of the downstream segment largely depends on innovative activities of private entrepreneurs to explore niche international markets for specialized rubber products.