Microcredit for rural poverty alleviation and social well-being: A study of Sabah, Malaysia

Document Type

Article

Publication Date

1-1-2017

Abstract

Microcredit is an influential intervention used to alleviate poverty and improve social well-being in rural communities in Sabah, Malaysia. This study examined the effects of a microcredit scheme, Amanah Ikhtiar Malaysia (AIM), on the well-being of these communities. Using a survey method, a pre-tested interview schedule was administered to 277 AIM recipients in Sabah, Malaysia. Social well-being was examined based on the three indicators of Midgley's social development approach: the management of problems, the fulfillment of basic needs, and social opportunities provided. AIM microcredit schemes were successful in improving the well-being of AIM recipients, although the recipients faced a number of problems, including unemployment, lack of education, and access to public services and healthcare facilities. The findings of this study represent a useful guideline to the AIM authority, development practitioners, policymakers, and governmental organization and non-governmental organization workers.

Keywords

Amanah Ikhtiar Malaysia (AIM), Malaysia, microcredit, poverty alleviation, social well-being

Divisions

arts

Publication Title

Asian Social Work and Policy Review

Volume

12

Issue

1

Publisher

Wiley

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