Amanah Ikhtiar Malaysia (AIM) plays a key role in developing entrepreneurship in Malaysia through its microcredit program. AIM provides loans and training to low-income households to start small businesses. It has over 250,000 members and has disbursed over $1.5 billion in loans. AIM aims to strengthen entrepreneurship through expanded training programs, new loan products, improved marketing support, and business transformation assistance. Studies show AIM has been successful in significantly increasing members' monthly incomes through its entrepreneur development initiatives.
1. AMANAH IKHTIAR MALAYSIA (AIM) ROLE IN DEVELOPING ENTREPRENEURSHIP IN MALAYSIA ADFIAP Meeting April 20-23, 2011 Acapulco Beach Club & Resort Hotel, Kyrenia, North Cyprus www.aim.gov.my CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
4. Malaysia Background - 2010 Area 330,803 Sq. Km Temperature 21 C to 32 C Population 28.3 Million Ethnic Malay, Chinese, Indian, Other Bumiputera & Others Labour force 12.2 Million Employment 11.8 Million Unemployment 3.6 % Major Products Rubber, Crude palm oil, Sawlogs, Crude oil & Natural gas Nominal GDP RM766.3 Billion Real GDP growth rate 6.0 % Per capita income RM23,841 (US8,256) Exchange rate (RM/US) 3.31 CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
15. AIM’s Products Activity Description Purpose 1. Micro-Financing for income generating activities (Economic Loans) First loan is up to RM 3,000 (USD 906) continuous loan based on repayment record and discipline. Maximum loan : RM 50,000 (USD 15,106) To finance income generating activities 2. Educational Loans For members and their family (including children) Skill development and children education 3. Multipurpose Loans Consumption needs including house renovation Increase well-being CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
16. AIM’s Products CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977 Activity Description Purpose 4. Compulsory savings/ group fund Ranging from RM 1 to 15 (USD 0.32 to 4.84) Group fund loan & savings withdrawal. 5. Welfare Fund (voluntary) RM 1 per month 1% contribution deducted from economic loan. Covering natural disaster, fire, hospitalisation, critical illness and death
17. Family Income below poverty line (First time borrowers ) Agree to form a group of 5 No Collateral, No Guarantor No Threat of Legal Action Weekly Repayment Weekly Center Meeting Weekly Saving Loan Covered by “micro-insurance” Administrative charge Continuous Loan Loan Conditions CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
18. Achievement As At December 2010 Total Members 253,631 Total Staff 1,576 No of Branches 87 No of Centers 6,604 No of Groups 59,901 Total Disbursement (RM Billion) USD Billion equivalent 4.83 1.56 Total Loan Outstanding (RM Million) USD Million equivalent 890.61 287.29 Repayment Rate (%) 99.5% CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
20. Sources of Loan Fund As at Dec 2010 No Source of Fund RM Million 1 Federal Government - Soft Loan 738.0 2 Federal Government - Grant 249.0 3 Grant from Donor 19.3 4 Bank Muamalat Malaysia 4.0 TOTAL : 1,010.3 CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
27. AIM’s Strategy To Enhance Entrepreneurship CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
28. Head Unit Business Development Manager Training Information System Promotion Planning Support Staff Administration Strategy 1: Strengthen Entrepreneur Development Unit CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
29. Strategy 2: Introducing New Loan Product (I-Usahawan) Scheme RM I- Mesra & I- Sri Kandi 100 – 19,900 I-Wawasan 20,000 – 50,000 I- Usahawan 51,000 – 300,000 CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
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32. 2 . Divide training in 3 stages . Strategy 4: Cont’d Holistic and Well Plan Training Program Stage Module Participant Basic Basic Entrepreneurship Potential entrepreneur Enhancement Focus on certain area of business Micro and Small Entrepreneur Advance Very focus and market expansion globally Medium Entrepreneur CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
42. Page Success Story (1) Name Norazah Binti Che Endut Branch Sik Date Joined 1992 (18 years) First loan RM500 Loan Cycle 8 Current loan RM50,000 Cumulative loan RM97,500 Activity Buying and Selling Scrap rubber Income Before RM 300/month Income After RM 30,000/month CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
43. Success Story (2) Name Mary Tangil Branch Sandakan 1 Date Joined 09/03/2001 First loan RM1,000 Loan Cycle 7 Current loan RM36,000 Cumulative loan RM137,000 Activity Car Accessories Income Before RM 300/month Income After RM 20,000/month CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
44. Success Story (3) Name Zamilah Ibrahim Branch Bachok Date Joined 06/08/1991 First loan RM 500 Loan Cycle 12 Current loan RM 20,000 Cumulative loan RM 83,300 Activity Produce and Process Herbs Income Before RM 300. /month Income After RM 5,000 /month CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
45. Page Success Story (4) Name Rohani Harun Branch Tumpat Date Joined 19/01/1996 First loan RM 500 Loan Cycle 6 Current loan RM 10,000 Cumulative loan RM 89,900 Activity Salt Distributor Income Before RM 270/month Income After RM 8,000/month CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
46. Success Story (5) Name Jasmawati Binti Hakim Branch Sandakan 1 Date Joined 09/03/2001 First loan RM1,000 Loan Cycle 13 Current loan RM 50,000 Cumulative loan RM 382,400 Activity Buying and Selling Used Clothes Income Before RM 300 /month Income After RM 3,000 /month CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
47. Success Story (6) Name Hajah Nordiana Abd Hamid Branch Sandakan 1 Date of Joined 21/03/2002 First loan RM1,000 Loan Cycle 7 Current loan RM 6,000 Cumulative loan RM 55,000 Activity Buying and Selling Scrap metal Income Before RM350 /month Income After RM3,000 /month CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
48. Page Success Story (7) Name Salasiah Binti Yusof Branch Kuala Langat Date Joined 24/5/2004 First loan RM 2,000 Loan Cycle 5 Current loan RM 10,000. Cumulative loan RM 35,000 Activity Food Processing Income Before RM 600/month Income After RM 1,500/month CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
49. Impact of Ikhtiar Loan on Borrowers’ Income (RM) CERTIFIED TO ISO 9001:2000 CERT. NO : MY-AR 4977
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