Investigating the Effect of Amanah Ikhtiar Malaysia's Microcredit Program on Their Clients Quality of Life in Rural Malaysia

International Journal of Economics and Finance, Vol. 4, No. 1, pp: 192-203, January 2012

12 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

Sazali Abdul Wahab

National Defence University of Malaysia

Date Written: October 17, 2012

Abstract

The objective of this study is to examine the impact of Amanah Ikhtiar Malaysia’s (AIM) microcredit program on their poor client’s quality of life in rural Malaysia. AIM provides small scale financial services and training to poor and hardcore poor households in order to improve their socio-economic condition. This study employed a cross-sectional design with stratified random sampling method to examine whether participation in AIM’s microfinance programs improves poor rural households quality of life. 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 the poor rural households in Malaysia. The findings show that respondent’s participation status is associated with the size and quality of their houses. AIM should therefore focus on increasing the outreach as well as review and re-organize their programs in order to offer a dynamic and well-diversified microfinance program to fulfill all financial needs of their poor clients in rural areas.

Suggested Citation

Mamun, Abdullah Al and Adaikalam, Joseph and Abdul Wahab, Sazali, Investigating the Effect of Amanah Ikhtiar Malaysia's Microcredit Program on Their Clients Quality of Life in Rural Malaysia (October 17, 2012). International Journal of Economics and Finance, Vol. 4, No. 1, pp: 192-203, January 2012. Available at SSRN: https://ssrn.com/abstract=2229118

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

Sazali Abdul Wahab

National Defence University of Malaysia ( email )

Kem Sungai Besi
Kuala Lumpur, Selangor 57000
Malaysia

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