Impact of Amanah Ikhtiar Malaysia’s Microcredit Schemes on Hardcore Poor Households Quality of Life

The Impact Of Microcredit In Malaysia – A Systematic Review

“…With all 21 studies contained in this review, we found that microcredit scheme in Malaysia generally has a positive impact on the beneficiaries economically and socially. Our findings also revealed that microcredit programme in Malaysia are able to reach positive impact to a large extent towards reaching the hardcore poor (Al-Mamun, Wahab, Hossain, & Malarvizhi, 2010). This result is consistent with a study by Hussain, Mahmood, and Scott (2018) which shown that that microcredit contributes significantly in improving socio-economic status of the poorest.…”

Contributions of Amanah Ikhtiar Malaysia (AIM) microfinance to Economic Empowerment (EE) of women borrowers in Malaysia

“…Participation in the microcredit program of AIM increased employment, which generated opportunities at the household and community levels. The policy may be reviewed and re-organized to increase the employment rate and income-generating opportunities by providing appropriate training and diversified, flexible loan offers (Mamun, et al, 2011). Moreover, another study explained how AIM achieved its social performance in terms of the outreach to the poor and excluded its adaptation of services and products to client needs, and the improvement of the social and political capital of the poor and its social responsibility (Siti-Nabiha & Siti-Nazariah, 2011).…”

“…Empowerment includes encouraging and developing skills for self-sufficiency, with a focus on eliminating the need for charity or welfare support (Gibbons & Kasim, 1990;Salma, 2004;Nawai & Bashir, 2009). In spite of remarkable economic growth in Malaysia which is reducing inter-ethnic income disparity and economic imbalance, hard-core poverty and problems with women empowerment are the prime threats that hinder Malaysia from being declared as a completely developed country by 2020 (Mamun, Wahab, Hossain, & Malarvizhi, 2011). The Amanah Ikhtiar Malaysia (AIM) has been the major and largest MFI in Malaysia (Salma, 2004;Mamun et al, 2011).…”

“…In spite of remarkable economic growth in Malaysia which is reducing inter-ethnic income disparity and economic imbalance, hard-core poverty and problems with women empowerment are the prime threats that hinder Malaysia from being declared as a completely developed country by 2020 (Mamun, Wahab, Hossain, & Malarvizhi, 2011). The Amanah Ikhtiar Malaysia (AIM) has been the major and largest MFI in Malaysia (Salma, 2004;Mamun et al, 2011). By adopting the Grameen Bank microcredit approach, AIM provides poor women with access to credit for IGAs and eventually move them out of poverty.…”

The Economic Philosophy of Micro-Credit System

“…Women form a special 'excluded' class and the role of NABARD in alleviating their economic condition is especially appreciable. Al-Mamun et al (2010) report a positive impact of microcredit schemes on the hardcore poor client's quality of life in Peninsular Malaysia and conclude that expanding microcredit services to more people will improve the quality of life of the hardcore poor households and, therefore, usefulness of the microcredit program as a development instrument is appreciable. Atapattu (2009) concludes that although it is difficult to state as to what extent microfinance has contributed to national poverty alleviation in Shri Lanka, but there are enough circumstantial evidences to conclude that it has contributed to decline of poverty.…”