The rise and fall of Southeast Asian states were closely tied to changes in international trade

routes. These shifts were influenced by local political configurations and external pressures.
Over time, trade routes adapted to emerging powers and their initiatives, underscoring the
dynamic interplay between commerce and state formation in premodern Southeast Asia.

The development of international maritime trade in Asia occurred in phases, beginning with
routes connecting the Middle East to India. This trade gained momentum during the Roman
Empire’s Pax Romana in the 1st century CE, as sailors from Greece and the Roman Orient
adopted knowledge of monsoon wind patterns for navigation. By the time Western traders
reached India, a well-established maritime route linked India to the Malay Peninsula. Malay
sailors, along with Indian and Arab merchants, frequently travelled from India’s eastern coast or
Sri Lanka to Southeast Asian ports, providing access to China’s lucrative markets. Early
references to Southeast Asian trade are somewhat vague. Ancient Indian texts from the early
centuries CE refer to the region as Yāvadvīpa or Suvarṇadvīpa, meaning the “Golden Island” or
“Golden Peninsula.” Buddhist Jātaka tales describe Indian merchants venturing into Southeast
Asia in search of wealth. In the mid-2nd century CE, Ptolemy also used the term Yāvadvīpa to
describe these lands, although he noted that only a few Roman and Indian sailors journeyed
there.

Initially, ships from Indian ports docked on the upper western coast of the Malay Peninsula.
Goods were then transported across the Isthmus of Kra to the Gulf of Thailand, where they
were loaded onto other vessels for onward shipment to ports in the Mekong Delta, including the
archaeological site of Oc Eo, within the Funan kingdom. Funan, located along the lower Vietnam
coast, emerged as a dominant player in this segment of trade, facilitating the movement of
goods to southern Chinese ports until the 5th century. Roman traders eventually integrated into
this network, extending their reach beyond India and Sri Lanka to Sumatra and other trading
hubs in the western Java Sea. Following the decline of Funan, the Malay Peninsula and
mainland Southeast Asia ceded their roles as primary trade centers to the maritime routes
through the Strait of Malacca and the South China Sea, which became fully operational by the
late 4th and early 5th centuries. By the 5th century, maritime trade had become the central
conduit for East-West commerce.
During the first five centuries CE, Southeast Asia became a well-defined and prosperous region
for international trade, fostering significant economic and political changes. The establishment
of trade routes brought Southeast Asian societies into regular contact with foreign merchants,
exposing them to new cultures and ideas. Initially, the region’s ports functioned primarily as
stopover points, offering services like lodging, food, water, and storage to traders waiting for
favorable winds to continue their journeys. These ports facilitated the exchange of goods
between Eastern and Western merchants. Over time, Southeast Asian merchants began to
participate actively in the trade by exporting local products such as spices and aromatics as
alternatives to imported goods. By the 4th and 5th centuries, spices from Indonesia’s eastern
archipelago found a strong demand in international markets. This growing trade required closer
political and economic ties between coastal trading centers and their hinterlands. Consequently,
international trade became a catalyst for state-building in the region, as communities developed
more structured systems to manage and benefit from these new opportunities.
Several factors contributed to the growth of maritime trade during the 1st century CE:

Demand for Gold:

● Gold shortages arose due to disruptions in Central Asian caravan routes, which had
previously provided Siberian gold to Asian markets.
● Gold, essential for trade as a universal medium of exchange, became harder to acquire.
Roman gold coins, initially sought after, lost appeal after Emperor Nero (54–68 CE)
reduced their gold content. Emperor Vespasian (69–79 CE) later tried to halt the outflow
of gold from Rome.
● These developments led Indian merchants to turn their attention toward the fabled
wealth of Southeast Asia, known as the “Islands of Gold.”

Advances in Shipbuilding and Navigation:

● The 1st century saw significant improvements in ship design, including fore and aft
rigging, which increased sailing efficiency.
● Larger ships capable of carrying up to 600–700 tons of cargo became common, allowing
for greater volumes of trade. Pliny the Elder even documented a 75-ton ship crossing the
ocean.

The Spread of Buddhism:

● The 1st century was a golden age for Buddhism, which viewed commerce more
positively than Hinduism.
● The rise of Mahāyāna Buddhism in northern India, supported by wealthy merchants,
emphasized compassion and the assistance of others. This inclusive doctrine fostered
broader public worship in large shrines and linked spirituality with the expanding
commercial world.
● Buddhist literature, such as the Jātaka tales, depicted trade and wealth acquisition as
natural aspects of human life, provided they were pursued ethically.
● Sailors in the Indian Ocean often worshipped the Buddha Dīpamkara, revered as the
"Calmer of the Waters," with statues of this deity found across Southeast Asia from this
period.
● By the 6th century, Buddhism had become particularly significant in China, and
Southeast Asia served as a crucial intermediary between South Asia, the origin of
Buddhism, and China.

Another factor driving the growth of maritime trade through Southeast Asia was the increasing
interest from China, particularly after the collapse of the Han dynasty between 190 and 225 CE.
Political instability in northern China and disruptions along the Central Asian caravan routes
heightened the need for a southern maritime trade link connecting East and West.
This shift had significant implications for Southeast Asia, particularly for regions south and east
of the Malay Peninsula, as they responded to the increased Chinese emphasis on maritime
trade. Coastal centers in the Sunda Strait, which had already traded directly with India and
indirectly with China via Funan’s ports, quickly seized the opportunity to establish direct trade
links with China.

By the fifth century, evidence shows that Funan's dominance as a key commercial power in
Southeast Asia was waning. In 430 CE, the ruler of a western Java kingdom, petitioned the
Chinese court for protection for his ships, which were regularly sailing to China. This marked the
establishment of direct maritime routes between the Sunda Strait and China, bypassing
Funan.The changing dynamics of trade provided new opportunities for the indigenous elites of
Southeast Asian coastal centers. Increased international trade allowed local rulers to
consolidate power by organizing the flow of goods from their hinterlands, profiting from sales,
and imposing fees on foreign merchants. This wealth not only supplemented the traditional
income of these elites but also enhanced their status and alliances through rituals of gift-giving
and redistribution of luxury goods. As a result, rulers actively sought to control trade routes and
strengthen their dominance over rival centers.

By the fifth century, the southern coast of Sumatra had become a strategic trade hub, benefiting
from the expanding Chinese demand for Southeast Asian goods. River-mouth centers in the
Java Sea region began sending products directly to Chinese ports, bypassing Funan entirely.
Coastal rulers in Sumatra capitalized on their advantageous location between the resources of
the Java Sea and Chinese markets, facilitating the transport of goods while combating piracy in
the Strait of Malacca. Indian ships also started bypassing the Isthmus of Kra, opting instead for
the southern route through the strait. This competition among emerging trade centers further
marginalized Funan, whose ports became peripheral to the main trade networks. To remain
involved in international commerce, Funan’s traders had to travel to other centers, reversing
their previous role as the region’s primary trade destination.

Malay seamen played a dual role in international trade; they could facilitate commerce but also
act as significant obstacles. They had the potential to be either shippers or pirates. Chinese
historical records indicate that “merchant ships of the barbarians” (K’un-lun) were used to
transport Chinese envoys to the archipelago, and these seamen benefited both from trade and
from acts of plunder and violence. This duality of the Malay seamen is evident, as the Chinese
viewed Southeast Asia as politically unstable and a potential threat to the smooth flow of goods
into China. The Chinese government was more focused on establishing commercial objectives
than on asserting political dominance; they believed that the southern regions would eventually
integrate into the Chinese cultural sphere without needing annexation.

Like their South Indian counterparts, Southeast Asian rulers used Sanskritic traditions to
strengthen alliances with local elites and establish a framework of ritual kingship. This system
allowed monarchs to exercise authority based on moral and spiritual power rather than force.

Maritime trade played a crucial role in these processes. Revenues from international commerce
supplemented local resources, enabling rulers to redistribute wealth and solidify their alliances.
Coastal leaders developed ports to cater to traders' needs, providing security, stabilizing
hinterlands, and ensuring the availability of desired goods. Successful chiefs gained loyalty by
sharing the profits of trade and enhancing their spiritual stature through association with Indic
religious traditions.

Ultimately, the adoption of Indic culture in Southeast Asia was driven by its utility as a tool for
expanding sovereignty and fostering unity. The integration of these cultural elements was not
imposed by external forces but emerged through local initiatives to harness the advantages of
trade, alliances, and religious legitimacy. In the chapters ahead, the specific ways in which these
cultural forms influenced the development of individual Southeast Asian states will be explored
in greater detail.