PELUANG DAN PEMBANGUNAN PENJAJA DAN PENIAGA KECIL MELALUI AMANAH

IKHTIAR MALAYSIA

By

DATUK HAJAH ZABIDAH ISMAIL

MANAGING DIRECTOR

AMANAH IKHTIAR

MALAYSIA (AIM)

ENTREPRENEURAL IMPACT AND COMMUNITY

DEVELOPMENT: EXPERIENCE OF AMANAH

IKHTIAR MALAYSIA

Microloans (up to

RM50,000)

Group lending

Technology

No Guarantor/

collateral

Interest free

Trustee Incorporation

Act 1952 (Revised

1981)

Personal Capacity

Trustees

Government

Officers

Exclusive focus

on the low income

household & women

Specialized credit

delivery system

Specially trained staff

Supportive national

policy framework

Poverty-Focused

MFI

Principles of Success

NGO (Board of Trustees)

Economic

development

approach through

microloans

Entrepreneurial

development

Social development

Integrated Approach

AIM: PRODUCTS AND SERVICES

3

ECONOMIC

EDUCATION

HOUSING

RECOVERY

•COMPULSARY SAVING

•SAHABAT COPERATIVE

KHAIRAT FUND

WELFARE FUND (TKKS)

2

DEVELOPMENT PROGRAMS

• SOCIAL DEVELOPMENT

• BUSINESS

DEVELOPMENT

4

MICRO

LOANS 1

3

SAVINGS

MICRO

INSURANCE

SPECIALIZED CREDIT DELIVERY SYSTEM –

MAIN PROCESSES

Market

Assessment

and Outreach

Business

Monitoring

Monitoring

and

Evaluation-

Impact

Repayment

Collection

Loan

Disbursement

• Identification

and motivation

• Group Formation

• Center

Formation

• Group Approval

• Center Approval

• Branch/ Area

Office Approval

• Weekly

collection at

Center

Meeting

• Loan Utilization

Check

• Training &

Development

Program

TARGET GROUP

1. Orang Asli 2. Indian 3. Rungus -Sabah 4. Bidayuh- Sarawak

AIM: OUTREACH

80 % CLIENTS IN THE RURAL AREAS

POTENTIAL TARGET GROUP

AIM: INITIAL DEVELOPMENT

1. MEANS TEST & MOTIVATION 2. TRAINING AND EMPOWERMENT

3. ACTIVE PARTICIPATION AND

WEEKLY MEETING

Size of loan

ranges from RM 1000

to RM 50,000 with an

average of RM 6,000

per loan.

LOAN DISBURSEMENT

56 % – Trading

26 % - Farming

10 % - Services

6 % - Fishing

2 % - Others

UTILIZATION

Clients as Loan Manager

Pipe liner

Partnership

32.8 %

26.9%

37.3 %

borrowers tend to share their

loan with family members for

operating one or several

projects.

BEFORE

AFTER

BUSINESS

TRANSFORMATION

AIM = BUSINESS DEVELOPMENT PROGRAM

CLIENT BUSINESS (SAHABAT)

MUARINI BINTI HORON KG PANGKALAN ABAI, KOTA BELUD, SABAH

HANDYCRAFTS, RETAIL AND CAR WASH

Jainah Wahui

TRANSFORMATION

AFTER - 2012

BEFORE ; 1995

IMPACT

• INCREASED INCOME

• CREATED JOB OPPORTUNITY

• INCREASED ASSET AND SAVINGS

• IMPROVED STANDARD OF LIVING

SAHABAT: TRANSFORMATION

13

TOTAL CONTRIBUTION RM10,000

WELFARE FUND - FIRE

NAME PUAN NOR AZAH CHE ENDUT

BRANCH SIK, KEDAH

LOAN AMOUNT RM 152,500 (SINCE 1993)

BUSINESS RUBBER WHOLESALER

CURRENT INCOME RM48,000 MONTHLY

ASSET RM 3.5 MILLION

SUCCESS STORIES

NAME PUAN JAMILAH BINTI

TAHIR

BRANCH KERIAN, PERAK

LOAN AMOUNT RM 130,000 (SINCE 1995)

BUSINESS CONTRACTOR AND

CATERING

MONTHLY INCOM RM 30,000

ASSET RM 3 MILLION

UK

M-

20

10

-20

11

1200 SAMPLES

AIM-1000 SAHABAT

NON SAHABAT (CONTROL GROUP) 200

AIM

& U

UM

20

09

-2

01

0

SAMPLES-4238 –ACTIVE CLIENTS

UP

M -

20

12

SAMPLES- 1,500

a. CLIENTS AND SPOUSE -1,200 AND CONTROL GROUP -300

UIA

20

11

UIT

M -

20

11

16

IMPACT ASSESSMENTS

SAMPLES 1,900- ACTIVE CLIENTS

SAMPLES 300 NEW AND OLD CLIENTS

SUMMARY: FINDINGS OF IMPACT ASSESSMENT

IMPACT

ECONOMY

FINDINGS

• MF HELP LOW INCOME PEOPLE TO IMPROVE INCOME

HOUSEHOLD AND ENTREPRISE MANAGEMENT,

INCREASE PRODUCTIVITY, EXPAND AND DIVERSIFY

BUSINESSES

• ACCUMULATION OF WEALTH

• ECONOMICALLY AND FINANCIALLY INDEPENDENT

ENTERPRISE

DEVELOPMENT

▪ POSITIVE IMPACT ON ENTERPRISE

▪ PRODUCTIVE INVESTMENT AND PROFITABLE

▪ GENERATE SELF EMPLOYMENT

▪ IMPROVE ROI AND ROA AND CREATE

ENTREPRENEURSHIP

COMMUNITY

IMPACT

▪ BENEFITS SOCIETY

▪ JOB OPPORTUNITIES DIRECTLY AND INDIRECTLY

• POSITIVE IMPACT ON POVERTY REDUCTION

▪ WOMEN EMPOWERMENT

1

2

3

USM AIM MAMPU AIM USM AIM UKM UUM

IMPACT 1(1989 )

IMPACT 2(1990)

SERU (1992)IMPACT 3

(1994)IMPACT 4

(1995)IMPACT 5

(2005)IMPACT 6

(2010)IMPACT 7

(2010)

BEFORE 142 142 198 223 201 321 488 515

NOW 220 460 457 532 760 1948 1751 2640

55%

224% 131% 139%

279%

507%

259%

413%

0

500

1000

1500

2000

2500

3000

MO

NTH

LY H

H IN

CO

ME

(RM

)

AIM : TREND IN CHANGES IN MONTHLY INCOME BEFORE AND AFTER AIM

A Clear contrast when comparing the household income after obtaining the loan.

Average monthly income before joining AIM was at RM 515. It is now at RM 2640 a month:

increased by four fold or 400%

Impact Assessement

19

SAHABAT

AIM

Y Malaysia

2008

AIM: SAHABAT

TRANSFORMATION

Source: ImpactAIM-UUM,

UKM and IIUM 2010

ABLE TO PAY

ZAKAT

STATUS: 6 YRS AVERAGE IN

AIM 4 LOAN CYCLE WITH AVE. RM = RM 17,229

69 %

CONTRIBUTION TO

HH INCOME

ELEMENT BEFORE AIM AFTER AIM

HH INCOME RM 515 RM2,640

SAVING RM176 RM343

INVESTMENT 20% 60 %

ASSET 20 % 75 %

POVERTY

STATUS 90%:POOR

20% : POOR

75 % : NON POOR

5% : RICH

57.3

%

MOVING FORWARD: AIM ECO-SYSTEM

20

AIM

AIMSB

KOOP

SAHABAT

MF & ENTREPRENEUR

LOAN

NETWORKING, INVESTMENT FUNDING

ENTREPRENEUR LOAN –5RM50,000 - RM300,000

HOSPITALITIY AND HOTELS DIVIDEND AND BONUS SAHABAT SUPERMARKET

CASH FLOW AND FUNDING FOR AIM

MICRO LOAN –RM50,000 MIIM – TRAINING , R & D,

BUSINESS DEVELOPEMENT MICRO INSURANCE, ZAKAT,

WAKAF AND INFAQ

THANK YOU

AMANAH IKHTIAR

MALAYSIA (AIM)