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Impact of microcredit on income, poverty, and economic vulnerability in Peninsular Malaysia

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  • Abdullah Al-Mamun
  • Mohammad Nurul Huda Mazumder

Abstract

This article examines the effect of Amanah Ikhtiar Malaysia's (AIM) microcredit programme on low-income households' income, poverty rate, and vulnerability in Peninsular Malaysia. This study employed a quasi-experimental approach, cross-sectional design, and stratified random sampling method. Findings indicated that participation in AIM's microcredit programme leads to an increase in household income and reduces both the poverty rate and level of economic vulnerability. AIM and policymakers, therefore, should focus on promoting a supportive environment to improve cooperation among participants by designing a dynamic and well-diversified microfinance programme and specialised skills-building training programme.

Suggested Citation

  • Abdullah Al-Mamun & Mohammad Nurul Huda Mazumder, 2015. "Impact of microcredit on income, poverty, and economic vulnerability in Peninsular Malaysia," Development in Practice, Taylor & Francis Journals, vol. 25(3), pages 333-346, April.
    • Handle: RePEc:taf:cdipxx:v:25:y:2015:i:3:p:333-346
    DOI: 10.1080/09614524.2015.1019339
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    Cited by:

    1. Erzsébet Németh & Boglárka Deák-Zsótér & Botond Géza Kálmán, 2024. "Order Creates Value: Personality, Attitudinal and Behavioral Factors of Financial Vulnerability," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 19(1), pages 1-21, Enero - M.

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