African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4188

Full Length Research Paper

Examining the effect of participation in microcredit programs on assets owned by hardcore poor households in Malaysia

Abdullah- Al- Mamun1*, C. A. Malarvizhi2, Sayed Hossain2 and Sazali Abdul Wahab3
1Centre for Social Entrepreneurship, Binary University College, 47100 Puchong, Selangor, Malaysia. 2Faculty of Management, Multimedia University, 63100 Cyberjaya, Selangor, Malaysia. 3National Defense University of Malaysia, Kuala Lumpur, 57000, Malaysia.  
Email: [email protected],[email protected].

  •  Accepted: 13 July 2011
  •  Published: 30 September 2011


This study employs a cross-sectional design with quasi-experimental approach to examine how participation in microcredit schemes affects hardcore poor household’s assets. Assets tend to be more stable over time and it is a good indicator of economic well-being; therefore, this study measures the impact of Amanah Ikhtiar Malaysia’s (AIM) microcredit schemes on assets owned by hardcore poor households in Peninsular Malaysia. Findings from this study confirm that the amount of loan received has a significant positive linear relationship with total productive assets and number of gainfully employed members, which subsequently leads to increase in household assets. It is recommended that AIM focus on review and re-organization of credit policies in order to increase client’s ability to invest higher amount of loan to generate income and it should also initiate new strategies to reduce unemployment rate among the client’s households.  


Key words: Microcredit, hardcore poor, poverty, household asset, Amanah Ikhtiar Malaysia (AIM).