Rubber Manufacturing in Malaysia

Rubber Manufacturing in Malaysia

Author: C.C. Goldthorpe

Publisher: NUS Press

Published: 2015-06-25

Total Pages: 182

ISBN-13: 9971698366

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Malaysia's rubber manufacturing sector is a prime example of an industry based on a locally produced agricultural resource. In Rubber Manufacturing in Malaysia, C.C. Goldthorpe draws on industrial policy theory along with many years of practical experience to examine the growth of rubber manufacturing in Malaysia. Over the past century, a series of technological discoveries resulted in the worldwide rise of a rubber production industry that manufactures tyres for motor vehicles, engineering components, household gloves and medical products. Goldthorpe argues that the production of rubber goods has played a significant part in the transformation of the country from primary commodity producer to newly industrialized economy, a position he supports by tracing the historical development of rubber-based industrial production and the effects of government policies promoting industrialization. Taken as a whole, the rubber industry is vertically integrated, with locally produced natural and synthetic rubbers used by the rubber manufacturing sector to produce latex products and general rubber goods for export markets.


Resource-based Industrialization in Peninsular Malaysia

Resource-based Industrialization in Peninsular Malaysia

Author: Christopher C. Goldthorpe

Publisher:

Published: 2009

Total Pages:

ISBN-13:

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This economic history and examination of the rubber products manufacturing industry in Peninsular Malaysia contributes to the subject of resource-based industrialization in the field of development studies. The development of the industry is traced from the 1920s to 2005 when the Second Industrial Master Plan came to an end. The findings are that local interests control 80 per cent of the industry, with foreign direct investment in the remaining 20 per cent, either as subsidiary companies of overseas manufacturers or in joint ventures with Malaysian investors. The industry has a dualistic structure, with foreign-owned and joint venture companies typically being more heavily capitalized and employing a larger workforce than wholly Malaysian-owned companies. Foreign and joint venture enterprises are more likely to export a greater volume of production than local firms. Nevertheless, the industry as a whole has a strong export-orientation and Malaysian-based exporters sell into markets worldwide. A detailed examination of the industrial components production sector by means of a questionnaire indicates that Malaysian producers rely on the Malaysian Rubber Board for the transfer of manufacturing technology. Technology transfer in the foreign and joint venture sector is from parent companies and joint venture associates overseas. The conclusion is that the rubber manufacturing industry is vertically integrated with local production of natural rubber used as raw material to produce a range of goods for sale to domestic and international markets. The 80 per cent Malaysian component indicates a stable domestic industry ably supported by local technology resources.