Achieving Human Development Objectives through Microfinance Institution: The Case of Amanah Ikhtiar Malaysia

This study examines the role of Amanah Ikhtiar Malaysia (AIM), a Malaysian MFI, in promoting human development among the rural poor.

The study is based on literature review and a survey to understand AIM members’ perceptions about achievement of human development goals after joining AIM. It also analyzes training programs and activities adopted by AIM to achieve human development targets. Findings include:

• Microfinance in Malaysia is able to uplift the poor by increasing household income, spending and consumption;
• Many AIM clients are able to give zakah (alms) since becoming members of AIM;
• AIM membership has positive impact on health of their members and education of their children;
• AIM training helps members in financial management and self-development;
• AIM needs to offer training at higher levels.

The study reveals that microfinance can be used not only to combat poverty, but also to achieve human development goals.