Thailand plans to become "the world's hub for Asian rubber technology and development" within the next seven to 10 years, a move that will strengthen global rubber prices, according to caretaker Prime Minister Thaksin Shinawatra.

The notion was announced following the first World Rubber Summit in Bangkok yesterday. The event was held to foster cooperation between rubber-producing and importing countries to help improve the industry.

To ensure that the Kingdom holds on to its place as the world's largest rubber producer and exporter, Thaksin said the country needs to strengthen its development of enterprises to meet increasing world demand.

"The value of natural rubber will gradually grow because of the rising price of oil," he said. "As rubber is a major export, we need to maintain that position by making the country a centre for developing new uses for rubber."

Thailand has 34 per cent of the world rubber market. According to the Commerce Ministry, the country exported rubber worth US$2.43 billion (Bt92.29 billion) in the first half of this year, an increase of 53.4 per cent over the corresponding period last year.

Sudarat Keyuraphan, caretaker agriculture and cooperatives minister, said that to achieve its plan, the government would seek cooperation from the world's leading manufacturers to further develop the local rubber industry.

A centre will be established within three years to research and develop new uses for natural rubber and to support development of the rubber industry, she said. This will be the first of three steps. The second will involve increasing the labour force to support rubber growing and the industry generally, and the third will seek to make the industry a more complex business in which the value of rubber is enhanced.

Sudarat said rubber exports would jump from the present Bt100 billion to between Bt500 billion and Bt700 billion in the next five years, if the country sticks to the plan.

Vorathep Wongsasuthikul, president of the Thai Rubber Latex Association, said the government needed to help develop "the whole chain of the industry", to ensure that its plan did not falter, as previous schemes had.

He suggested that the government give financial support for research and development and stabilise rubber prices to help small and medium-sized industries overcome price fluctuations.

He also suggested that the government set up a centre that would be responsible for rubber industry and its development.

"It will be difficult for Thailand to become a centre of rubber trading in the world as long as there is no organisation that unifies [the industry]," Vorathep said.

Nopadol Suanprasert, director-general of the Office of the Rubber Replanting Aid Fund, said Thailand's lack of marketing and logistics development could throw a wrench into the government's plan. He said the country should focus on building more rubber plantations to meet rising world demand and the country should also seek new markets.

There are 12 million rai of rubber plantations in the country. Each rai has a yield capacity of 300kg.

World demand for rubber will increase 50 per cent within the next five years, Nopadol predicted. Therefore, Thailand should increase its rubber plantation areas by 50 per cent to 18 million rai and also increase its yield capacity to compete with Malaysia, Indonesia and Vietnam.

He also predicted that along with increased demand for natural rubber would come an increase in rubber prices. It is possible that within five years the price of rubber will exceed Bt100 per kg, he said. The present price is Bt70 to Bt75 per kg.

The Agriculture and Cooperatives Ministry plans to hold a World Rubber Summit every two years to bring together rubber producers and users from around the world.

Yesterday's summit, the first, drew representatives from China, India, Indonesia, Malaysia, Singapore, Vietnam, Hong Kong, Canada, Sri Lanka, Taiwan, Korea, Japan, Germany, France, England, and the US.

The event, at Impact Arena, Muang Thong Thani, also had more than 300 exhibitors promoting the latest products and services. The exhibition will end on Saturday.

Petchanet Pratruangkrai

The Nation