The Growth of Production

Abstract

Malaysian production for export in the nineteenth and early twentieth century, particularly of agricultural commodities, proceeded in a ‘boom and bust’ cycle related directly to changes in world prices. The typical pattern (with the major exception of rubber) was a rush to extend the planted area of a particular crop in response to higher prices leading, on maturity of the trees or plants, to a sharp rise in production. Depending on the continuing strength of demand, market prices then tended to fall, sometimes very heavily, causing investment to wane. Changes in government policy (e.g., land tenure terms), together with the incidence of plant disease or insect pests, were also major factors bearing on the long-term viability of an industry.