Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Contributions of Amanah Ikhtiar Malaysia (AIM) microfinance to Economic Empowerment (EE) of women borrowers in Malaysia
Issue: Vol. 12, No 4, 2019
Published date: 12-2019 (print) / 12-2019 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Tasnuba Haque
Universiti Kebangsaan Malaysia (UKM), Malaysia

Chamhuri Siwar
Universiti Kebangsaan Malaysia (UKM), Malaysia

Abul Bashar Bhuiyan
University Selangor (Unisel), Shah Alam, Malaysia

Mohd Hasanur Raihan Joarder
United International University (UIU)
Keywords: Microfinance, Microcredit, Economic Empowerment (EE), Amanah Ikhtiar Malaysia (AIM), Malaysia
DOI: 10.14254/2071-789X.2019/12-4/15
Index PUBMS: 74ac0cf8-3716-11ea-b360-fa163e0fa1a0
Language: English
Pages: 241-256 (16)
JEL classification: D02, O17, P31
The authors are thankful to the CRIL, UNISEL for allowing of using of KPT FRGS Grant: FRGS/1/2018/SS01/UNISEL/02/ entitled “FORMULATION OF MICROFINANCE INSTITUTIONS SUSTAINABILITY INDEX (MISI) IN MALAYSIA” for financial support to carry out this research to be published.

The main aim of the study is to investigate the impact of AIM micro-crediting on the on the Economic empowerment (EE) of the borrowers at the East Coast Region in Malaysia. The study used both the quantitative and qualitative approach based on primary data from the field. There are 384 samples of AIM’s borrowers were collected from the Terengganu, Kelantan, and Pahang in East Coast Economic Region (ECER), Malaysia. The present study has used descriptive statistical and women empowerment index. The women empowerment index (the Economic Empowerment Index) employed to measure the level development of the status of women in economical decision-making contexts. The study summarized that AIM’s credit has contributed towards the ‘improvement of empowerment of women in all categories of Economic issues. The present study recommends policy considerations for the successful and effective operation of microfinance programs through the increase of proper income generating activities, sufficient amount of access to credit, create self-employment opportunity in Malaysia.


1. 9th.Malaysia.Plan. (2006). The 9th Malaysia plan: 2006-2010. Unit Economic Planing, Putra Jaya, Malaysia: Prime Minister’s Department.

2. Ahmed, F., Siwar, C., & Idris, N. A. H. (2011a). Role of microcredit programme to the socio-economic development and poverty: Alleviation among rural women in Bangladesh. Journal of Applied Sciences Research, 7(7), 1117-1121.

3. Ahmed, F., Siwar, C., & Idris, N. A. H. (2011b). The status of women: Some data in Bangladesh. Journal of Applied Sciences Research, 7(6), 805-809.

4. Ahmed, F., Siwar, C., & Idris, N. A. H. (2011c). Sustainable livelihood amongst rural women through microcredit programme in Bangladesh. Australian Journal of Basic and Applied Sciences, 5(7), 116-120.

5. Ahmed, F., Siwar, C., & Idris, N. A. H. (2011d). Women's participation in microcredit programme: Some evidence in Bangladesh. Australian Journal of Basic and Applied Sciences, 5(7), 106-115.

6. Ahmed, F., Siwar, C., Idris, N. A. H., & Begum, R. A. (2011). Impact of Grameen bank microcrdit programme on changing livelihood status of the rural women in Panchagarh District of Bangladesh. American Journal of Applied Sciences, 8(10), 973-978.

7. Ahmed, F., Siwar, C., Idris, N. A. H., & Mia, M. S. (2011). Role of microcredit in reducing vulnerability of the rural women: Evidence from Panchgarh district of Bangladesh. World Applied Sciences Journal, 15(9), 1325-1333.

8. Angeles, L. C., & Hill, K. (2009). The gender dimension of the agrarian transition: Women, men and livelihood diversification in two peri-urban farming communities in the Philippines. Gender, Place and Culture, 16(5), 609-629.

9. APEC. (2005). The Need and Availability of Micro Finance Service for the Micro Enterprise:Bringing multi-level Good Practices into Local Context.

10. Basher, M. (2007). Empowerment of microcredit participants and its spillover effects: evidence from the Grameen Bank of Bangladesh. The Journal of Developing Areas, 40(2), 173-183.

11. Bhole, B., & Ogden, S. (2010). Group lending and individual lending with strategic default. Journal of Development Economics, 91(2), 348-363. doi:10.1016/j.jdeveco.2009.06.004.

12. Bhuiya, A., & Chowdhury, M. (2002). Beneficial effects of a woman-focused development programme on child survival: evidence from rural Bangladesh. Social Science & Medicine, 55(9), 1553-1560. doi:10.1016/S0277-9536(01)00287-8.

13. Bhuiyan, A. B., Siwar, C., Ismail, A. G., & Hossain, T. B. (2012). Microcredit Impact on Children’s Education and Women Empowerment: A Review Experience of Grameen Bank Microfinance Schemes in Bangladesh. Research Journal of Applied Sciences, 5.

14. Bhuiyan, A. B., Siwar, C., Ismail, A. G., & Talib, B. (2011). Islamic Microcredit is the way of alternative approach for eradicating poverty in Bangladesh: A review of Islami bank Microcredit scheme. Australian Journal of Basic and Applied Sciences, 5(5),

15. Bose, M. L., Ahmad, A., & Hossain, M. (2009). The role of gender in economic activities with special reference to women's participation and empowerment in rural Bangladesh. Gender, Technology and Development, 13(1), 69-102.

16. Chan, S. H., & Ghani, M. A. (2011). The impact of microloans in vulnerable remote areas: Evidence from Malaysia. Asia Pacific Business Review, 17(1), 45-66.

17. D'Espallier, B., Guérin, I., & Mersland, R. (2011). Women and Repayment in Microfinance: A Global Analysis. [doi: 10.1016/j.worlddev.2010.10.008]. World Development, 39(5), 758-772.

18. Esnard-Flavius, T., & Aziz, Z. (2011). Microcredit, microenterprises and social welfare of the rural poor in North-Eastern Trinidad: An evaluation of "Hope". Asian Academy of Management Journal, 16(1), 95-118.

19. Gibbons, D. S., & Kasim, S. (1990). Banking on the rural poor in Peninsular Malaysia: Center for Policy Research, Universiti Sains Malaysia.

20. Haile, H. B., Bock, B., & Folmer, H. (2012). Microfinance and female empowerment: Do institutions matter? Women's Studies International Forum.

21. Hazarika, G., & Sarangi, S. (2008). Household Access to Microcredit and Child Work in Rural Malawi. [doi: DOI: 10.1016/j.worlddev.2007.05.008]. World Development, 36(5), 843-859.

22. Hearn, B., Piesse, J., & Strange, R. (2011). The role of the stock market in the provision of Islamic development finance: Evidence from Sudan. Emerging Markets Review, 12(4), 338-353.

23. Hermes, N., Lensink, R., & Meesters, A. (2011). Outreach and Efficiency of Microfinance Institutions. World Development, 39(6), 938-948.

24. Holland, T., & Wang, L. (2001). Avoiding the perils and fulfilling the promises of microfinance: A closer examination of the educational outcomes of clients' children in Nicaragua. [doi: DOI: 10.1016/j.ijedudev.2010.07.002]. International Journal of Educa

25. Khandker, S. (1998). Micro Credit Programme Evaluation: A Critical Review1. IDS bulletin, 29(4), 11-20.

26. Khandker, S. R. (2005). Micro-Finance and Poverty Evidence Using Panel Data from Bangladesh. The World Bank Economic Review.

27. Khandker, S. R., & Chowdbury, O. H. (1996). Targeted Credit Programme and Rural Poverty in Bangladesh. Washington, D.C.:: World Bank

28. M.Salma. (2004). A Comparative Case Study on Outreach and Impact of Ikhtiar Loan Scheme and Special Program for Hardcore Poor in Seberang Perai Pulau Pinang. . University Science Malaysia.

29. Mamun, A. A., Wahab, S. A., Hossain, S., & Malarvizhi, C. (2011). Impact of Amanah Ikhtiar Malaysia’s Microcredit Schemes on Hardcore Poor Households Quality of Life.

30. Mason, K. O., & Smith, H. L. (2003). Women’s empowerment and social context: results from five Asian Countries. Gender and Development Group, World Bank, Washington, DC.

31. McKernan, S. M. (2002). The Impact of Microcredit Programs on Self-Employment Profits: Do Noncredit Program Aspects Matter? Review of Economics and Statistics, 84(1), 93-115.

32. Mirghani, M., Mohammed, M., Bhuiyan, A. B., & Siwar, C. (2011). Islamic microcredit and poverty alleviation in the Muslim World: Prospects and challenges. Australian Journal of Basic and Applied Sciences, 5(9), 620-626.

33. Misturelli, F., & Heffernan, C. (2010). The concept of poverty: A synchronic perspective. Progress in Development Studies, 10(1), 35-58.

34. Moniruzzaman, M. (2011). Group management and empowerment: Lessons from development NGOs in Bangladesh. Journal of South Asian Development, 6(1), 67-91.

35. Nawai, N. B., & Bashir, M. S. (2009). Evaluation of micro credit program for poverty alleviation: A case of Amanah Ikhtiar Malaysia (AIM).

36. Perry, D. (2002). Microcredit and women moneylenders: The shifting terrain of credit in Rural Senegal. Human Organization, 61(1), 30-40.

37. Pitt, M. M., Khandker, S. R., Chowdhury, O. H., & Millimet, D. L. (2003). Credit programs for the poor and the health status of children in rural bangladesh*. International Economic Review, 44(1), 87-118.

38. Rahman, A. (1999). Micro-credit initiatives for equitable and sustainable development: Who pays? [doi: 10.1016/S0305-750X(98)00105-3]. World Development, 27(1), 67-82.

39. Rowlands, J. (1997). Questioning empowerment: Working with women in Honduras: Oxfam Publications.

40. Serrona, K. R., & Yu, J.-s. (2009). Finding urban waste management solutions and policies: Waste-to-energy development and livelihood support system in Payatas, Metro Manila, Philippines. [doi: 10.1016/S1001-0742(09)60033-4]. Journal of Environmental Scie

41. Shimamura, Y., & Lastarria-Cornhiel, S. (2010). Credit Program Participation and Child Schooling in Rural Malawi. [doi: DOI: 10.1016/j.worlddev.2009.11.005]. World Development, 38(4), 567-580.

42. Siti-Nabiha, A. K., & Siti-Nazariah, A. Z. (2011). Evaluating social performance: A case study of a microfinance institution in Malaysia. International Journal of Management and Enterprise Development, 10(4), 271-290.

43. Stromquist, N. P. (2002). Education as a means for empowering women. Rethinking empowerment: Gender and development in a global/local world, 22-38.

44. Vargas, & MarÍa, C. (2002). Women in Sustainable Development: Empowerment through Partnerships for Healthy Living. [doi: DOI: 10.1016/S0305-750X(02)00058-X]. World Development, 30(9), 1539-1560.

45. Varghese, T. (2011). Women Empowerment in Oman: A study based on Women Empowerment Index. Far East Journal of Psychology and Business, 2(2), 37-49.

46. Wallerstein, N. (1992). Powerlessness, empowerment, and health: implications for health promotion programs. American journal of health promotion, 6(3), 197-205.

47. Zahra, S. A., Gedajlovic, E., Neubaum, D. O., & Shulman, J. M. (2009). A typology of social entrepreneurs: Motives, search processes and ethical challenges. [doi: DOI: 10.1016/j.jbusvent.2008.04.007]. Journal of Business Venturing, 24(5), 519-532.

48. Zaman, H. (1999). Assessing the poverty and vulnerability impact of micro-credit in Bangladesh: A case study of BRAC. Washington D.C, World Bank.