Economic and Social Impact of Amanah Ikhtiar Malaysia (AIM) Scheme: A Case Study in Kedah and Terengganu

Amanah Ikhtiar Malaysia (AIM) was established in 1987. The main objective of its establishment was to uplift households out of poverty through providing small loan to the rural poor. Most studies of AIM have concentrated only on the impact of this scheme on its members. They do not compare the conditions with non‐members within the same community. This paper attempts to analyse an economic and social impact of AIM in the selected areas in Kedah and Terengganu. The analysis will be based on the data collected in 1993, which comprise 100 respondents of which 60 respondents are members of AIM and the other 40 are non‐members and 20 non‐members and the other 50 respondents in Terengganu with the same composition. Since the data comprises of members and non‐members of AIM, the comparative analysis of economic and social impact is made possible. Aspects that will be emphasised include levels of income, expenditure, decision‐making process, empowerment for instant ownership of asset and saving, self‐esteem and health and participation in social, economic and political organisations.