Empirical Investigation on the Effect of Microfinance Program of Amanah Ikhtiar Malaysia on Quality of Life in Urban Peninsular Malaysia

European Journal of Economics, Finance and Administrative Sciences, ISSN 1450-2275, Issue 39 (2011), pp. 101-113

13 Pages Posted: 7 Mar 2013

See all articles by Abdullah Al Mamun

Abdullah Al Mamun

Universiti Malaysia Kelantan; Binary University College; Multimedia University

Joseph Adaikalam

Binary University College

Date Written: December 7, 2011

Abstract

The objective of this study is to investigate the effect of Amanah Ikhtiar Malaysia’s (AIM) Urban Microfinance Program on their client’s quality of life in Peninsular Malaysia. Urban Microfinance Program was launched by AIM in 2008 and no-known study has been conducted so far to measure the impact of this program. This study employed a cross-sectional design with stratified random sampling method. A quality of life index using eleven selected indicators was developed. Findings of this study extend the literature by providing empirical evidence that access to microfinance improved quality of life of participating households in urban Peninsular Malaysia. The findings show that respondent’s participation status is associated with the size and quality of clients’ houses. AIM should therefore focus on increasing the outreach by targeting ‘low income clients’ in urban Peninsular Malaysia. Moreover AIM should also review and re-organize their programs in order to present a dynamic and well-diversified microfinance program that fulfills the financial needs of their urban clients.

Keywords: Microfinance, Poverty, Quality of Life, Welfare, Peninsular Malaysia

Suggested Citation

Mamun, Abdullah Al and Adaikalam, Joseph, Empirical Investigation on the Effect of Microfinance Program of Amanah Ikhtiar Malaysia on Quality of Life in Urban Peninsular Malaysia (December 7, 2011). European Journal of Economics, Finance and Administrative Sciences, ISSN 1450-2275, Issue 39 (2011), pp. 101-113 . Available at SSRN: https://ssrn.com/abstract=2229111

Abdullah Al Mamun (Contact Author)

Universiti Malaysia Kelantan ( email )

Karung Berkunci 36
Pengkalan Chepa
Kota Bharu, Kelantan 16100
Malaysia

HOME PAGE: http://www.umk.edu.my/rasmi/

Binary University College ( email )

Bandar Puchong Jaya
47100 Selangor
West Malaysia
Malaysia

Multimedia University ( email )

Persiaran Multimedia
Cyberjaya, Selangor Darul Ehsan
Malaysia

Joseph Adaikalam

Binary University College ( email )

Bandar Puchong Jaya
47100 Selangor
West Malaysia
Malaysia

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