361 Supply of Rubber Wood Log in Malaysia A. W. Noraida and A. S. Abdul-Rahim Department of Economics, Faculty of Economics and Management, University Putra Malaysia, Malaysia Abstract Issue on shortage of raw material for wood processing solved by discovery of rubber wood log as one of the substitutes the natural log. This paper examines the supply of rubber wood log in Malaysia. We employ ARDL Bound Approach Test and time series data from 1980 to 2010 which represented the whole Malaysia are used to achieve the established objectives. The result shown, in the long run harvested area and wages have 1% and 10% significant level respectively. While in the short run, there was only harvested area having an impact with 1% significant level. This result indicates that, the harvested area become the most impact towards supply of rubber wood log either in short run or in the long run. While wages as input cost gave less impact in another word it become unburden to the producers. Keywords: ARDL bound test approach, rubber wood log & latex Introduction1 Rubber trees with species (Hevea brasiliensis) were planted in Malaysia since centuries ago. Historically, Sir Henry Wickham brought some seeds to the Kew Garden, United Kingdom from Brazil in 1876 (Hilton, 1955). Some of the seedlings were then transported to Singapore Botanical Garden through Ceylon (now known as Sri Lanka) in the same year before transfer to Malaysia. Based on archive records showed that the initial cultivation of rubber in Malaysia began in Kuala Kangsar in 1879 (Ratnasingam, 2000). Today, Malaysian recognizes him as the father of the rubber Corresponding author’s Name: A. S. Abdul-Rahim Email address: abrahimabsamad@gmail.com industry in Malaysia as appreciation of his contribution. Initially, the rubber trees serve as the main rubber producers in Malaysia. Just not only Malaysia the rubber trees are now widely planted in 20 countries around the world for the production of latex or natural rubber (Teoh et al., 2011). According to Shigematsu et al. (2011), more than 80% of total rubber plantation areas in the world are in Asia, with Malaysia, Indonesia and Thailand covering almost 70% of the total rubber cultivation. Malaysia was the largest producer of rubber in the world until the late 1980’s (Balsiger et al., 2000). Indonesia then took over as the biggest rubber cultivator in the world followed by Thailand. Malaysia is currently the 3rd most Asian Journal of Agriculture and Rural Development journal homepage: http://aessweb.com/journal-detail.php?id=5005