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

• Main Authors: Wahab, Haris Abd, Bunyau, William, Rezaul Islam, M.
• Format: Article
• Published: Wiley 2017
• Subjects: HG Finance; Credit. Debt. Loans
• Online Access: http://eprints.um.edu.my/20416/; https://doi.org/10.1111/aswp.12133
• Institution: Universiti Malaya

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.