Acknowledgement

A completed study would not be done without any assistance. Therefore, the author who

conducted this research gratefully gives acknowledgement to their support and motivation during

the time of doing this research as a requirement of completing my Degree of Business

Management.

First of all, I would like to express my endless thanks and gratefulness to my supervisor Dr.

Abdullah – Al – Mamun. His kindly support and continuous advices went through the process of

completion of my thesis. His encouragement and comments had significantly enriched and

improved my work. Without his motivation and instructions, the thesis would have been

impossible to be done effectively.

As a part of project: Fighting Against Poverty, my thesis has been done by contribution of all

relevant students. So far, I would like to thanks to groups who took charge in the process of data

collection and data entry for doing this research as a part of the project. I also acknowledge my

thankfulness to all respondents and managements’ branches of AIM program where data would

be collected for their valuable time, kind assistances and support in participating in the surveys. I

would like to state my thanks to Binary University College where supported financial for the

project and provided me scholarship to pursuing and completing my degree.

My special thanks approve to my parents for their endless love, care and have most assistances

and motivation me for the whole of my life. I also would like to explain my thanks to my

siblings, brothers and sisters for their support and care me all the time.

As last, my deeply thanks come to all my friends during time I study in Malaysia. Their kindly

help, care, motivation gave me strength and lift me up all the trouble for the rest of my life.

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 Abstracts

Many studies including those by World Bank provided evidence of the positive impact of

microcredit. In most cases, the studies have focused on the direct effects of microcredit on

household income and expenditure. In this study, the author would like to exam the effect of

microcredit on Quality of Life, Vulnerability and Unsatisfied Basic Needs in Urban Malaysia as

a part of study to find out whether this program has positive impact on the clients. The theory is

that the increase in income associated with microcredit scheme increases investigated the

probability that the poor can ease with their current situation.

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 Tables of Contents:

No. Contents Page No.

1. Chapter 1: INTRODUCTION
1.0 Introduction 1
1.1 Background of the study 1
1.2 Problem Statement 3
1.3 Research Questions 5
1.4 Research Objectives 5
1.5 Significance of the study 6
1.6 Organization of the study 7
2. Chapter 2: LITERATURE REVIEW
2.0 Introduction 9
2.1. Poverty and Microcredit 10
2.1.1. Global poverty Scenario 10
2.1.2. Definitions of Poverty 12
2.1.3. Level of Poverty 14
2.1.4. Indicators of Poverty 16
2.1.5. How to Reduce Poverty 20
How Microcredit leads to a decrease in Poverty rate – based on
2.1.6. 21
Income and Asset
2.1.7. Establishment of Microcredit 23
Microcredit characteristics of Grameen Banks Microcredit
2.1.8. 23
Program and Client Selection Process
2.1.9. Products and Services of Microcredit 26
2.1.10. Sample Models of Microcredit in The World 27
2.1.11. Outreach of Microcredit 29
2.1.12. Impact of Microcredit 30
2.2. Study Contents: Microcredit in Malaysia 33
2.2.1. Malaysia Economy 33
2.2.2. Poverty in Malaysia 34
2.2.3. Poverty Eradicating Policies 36
2.2.4. Microcredit Organizations in Malaysia 39
2.3. AIM (Amanah Ikhtiar Malaysia) 45
2.3.1. Background 45
2.3.2. AIM’s Products and Services 46
2.3.3. The impacts of AIM’s Services 51
2.4. Review of Methodology 53
2.4.1. Conceptual Model 53
2.4.2. Quantitative and Qualitative Study 55
2.4.3. Question Design 55
2.4.4. Sample Selection Process 56
3 Chapter 3: Research Methodology

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 List of Tables

No. Contents Page No.

2.1.1. Terms Used to Describe Poverty 13
2.1.2. Results of the Verification Process (12/1999 to 12/2009) 30
2.2.1. Special Target Group 39

List of Figures

No. Contents Page No.

Percent of people in the world at different poverty levels in
2.1. 11
2005
2.2.1. Malaysia’s GDP (purchasing power parity) in 2007-2009 34
HOUSEHOLD ECONOMIC PORTFOLIO MODEL
2.4.1. 54
(Chen and Dunn, 1996)

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