The effects of services by microfinance institutions on the welfare of urban households in Malaysia

The primary aim of this paper is to investigate the impact of financial (microcredit and microinsurance) and nonfinancial services (training), services by microfinance on the welfare of their urban clients in Malaysia. We contribute to the existing literature by using income as a mediating variabl...

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Main Authors: Koh, Her Loke, Adebola, Solarin Sakiru, Suganthi Ramasamy, Jauhari Dahalan
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2020
Online Access:http://journalarticle.ukm.my/15655/
http://journalarticle.ukm.my/15655/1/40817-130405-1-PB.pdf
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author Koh, Her Loke
Adebola, Solarin Sakiru
Suganthi Ramasamy,
Jauhari Dahalan,
author_facet Koh, Her Loke
Adebola, Solarin Sakiru
Suganthi Ramasamy,
Jauhari Dahalan,
author_sort Koh, Her Loke
building UKM Institutional Repository
collection Online Access
description The primary aim of this paper is to investigate the impact of financial (microcredit and microinsurance) and nonfinancial services (training), services by microfinance on the welfare of their urban clients in Malaysia. We contribute to the existing literature by using income as a mediating variable in the analysis. Questionnaires were distributed to 400 respondents across three different urban areas in Malaysia in order to collect the relevant data for this study. We have adopted the quota sampling to collect the data. The results show that most of the services provided by the microfinance institutions including microcredit, micro insurance and training have assisted the urban households to earn more income and enhance their socio-economic welfare. The recommendations arising from the results of this study are: 1) an environment that promotes cooperation between microfinance institutions and households should be enhanced and 2) well-diversified and dynamic microfinance programs and specific skills-building training programs should be created.
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spelling oai:generic.eprints.org:156552020-11-13T03:16:57Z http://journalarticle.ukm.my/15655/ The effects of services by microfinance institutions on the welfare of urban households in Malaysia Koh, Her Loke Adebola, Solarin Sakiru Suganthi Ramasamy, Jauhari Dahalan, The primary aim of this paper is to investigate the impact of financial (microcredit and microinsurance) and nonfinancial services (training), services by microfinance on the welfare of their urban clients in Malaysia. We contribute to the existing literature by using income as a mediating variable in the analysis. Questionnaires were distributed to 400 respondents across three different urban areas in Malaysia in order to collect the relevant data for this study. We have adopted the quota sampling to collect the data. The results show that most of the services provided by the microfinance institutions including microcredit, micro insurance and training have assisted the urban households to earn more income and enhance their socio-economic welfare. The recommendations arising from the results of this study are: 1) an environment that promotes cooperation between microfinance institutions and households should be enhanced and 2) well-diversified and dynamic microfinance programs and specific skills-building training programs should be created. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/15655/1/40817-130405-1-PB.pdf Koh, Her Loke and Adebola, Solarin Sakiru and Suganthi Ramasamy, and Jauhari Dahalan, (2020) The effects of services by microfinance institutions on the welfare of urban households in Malaysia. Jurnal Pengurusan, 58 . pp. 1-15. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/issue/view/1283
spellingShingle Koh, Her Loke
Adebola, Solarin Sakiru
Suganthi Ramasamy,
Jauhari Dahalan,
The effects of services by microfinance institutions on the welfare of urban households in Malaysia
title The effects of services by microfinance institutions on the welfare of urban households in Malaysia
title_full The effects of services by microfinance institutions on the welfare of urban households in Malaysia
title_fullStr The effects of services by microfinance institutions on the welfare of urban households in Malaysia
title_full_unstemmed The effects of services by microfinance institutions on the welfare of urban households in Malaysia
title_short The effects of services by microfinance institutions on the welfare of urban households in Malaysia
title_sort effects of services by microfinance institutions on the welfare of urban households in malaysia
url http://journalarticle.ukm.my/15655/
http://journalarticle.ukm.my/15655/
http://journalarticle.ukm.my/15655/1/40817-130405-1-PB.pdf