Authors : A.S. Usman and R. Tasmin
Abstract: Poverty has become pervasive in Muslim societies partly because the poor has been excluded from the financial system. The main objective of this study is to explore the conceptual framework on the relationship between the products of Islamic micro-finance and poverty reduction in Malaysia. The study identifies different products used to develop entrepreneurial skills leading to individual’s personal development, increased productivity and income and participation in economic and social life. The methodology of this study is qualitative research approach based on analysis of relevant documents. The finding of the study indicatesthat there is a significant increase in household income and a reduction in the incidence of poverty on Islamic micro-finance clients. The micro-credit is transformed towards a more flexible and convenient products to attract business and family needs of the poor. It was also found that other components of micro-credit such as micro-saving and insurance have received minimal study despitebeing crucial to social cohesion of small groups, communities or societies. The specialized products on education, health, housing and remittances suggests the poor demand more than just microloans.
A.S. Usman and R. Tasmin, 2016. Linkage Between Islamic Micro-Finance and Poverty Reduction in Malaysia. International Business Management, 10: 3739-3746.