Measuring the effect of Amanah Ikhtiar Malaysia’s microcredit programme on economic vulnerability among hardcore poor households

Abstract

This study attempted to assess the impact of Amanah Ikhtiar Malaysia’s (AIM) microcredit programme on the level of economic vulnerability among hard core poor household clients in Peninsular Malaysia. To attain the objective, this research utilized economic vulnerability index. This study employed a cross-sectional design and stratified random sampling methods. Findings showed that participation in AIM’s microcredit programme decreases the level of economic vulnerability. The study suggests that AIM should, therefore, emphasize on designing flexible and diversified financial products and delivery methods together with skill development training to improve the socio-economic condition of the hard core poor households in Malaysia.