Microcredit and Women Empowerment in Malaysia: The Role of AIM and YUM in Enhancing Socio-Economic Well-Being of Women Micro-Entrepreneurs in Sabah
List of Authors
Ang Hong Loong, Juliana Langgat, Khairul Hanim Pazim, Noor Fzlinda Fabeil, Roslinah Mahmud
Keyword
women empowerment, microcredit, AIM, YUM, women micro-entrepreneurs, rural enterprises
Abstract
Despite extensive research on the role of microcredit in poverty alleviation, its impact on women micro-entrepreneurs in rural East Malaysia remains underexplored. A significant proportion of the population in this region continues to earn below the national average household income, making financial inclusion a crucial factor for economic empowerment. This conceptual paper employs a scoping and mapping review of existing literature to examine how microcredit contributes to the economic and social well-being of women entrepreneurs in Sabah. Focusing on Amanah Ikhtiar Malaysia (AIM) and Yayasan Usaha Maju (YUM), the study highlights both the opportunities and limitations of microcredit in fostering sustainable entrepreneurship. While access to microcredit has enabled women to improve their livelihoods, challenges such as rigid repayment structures and inadequate financial literacy remain prevalent. This paper advocates for a more integrated approach, urging microcredit institutions to complement financial assistance with capacity-building programs, including business training, mentorship, and tailored financial education. By addressing these gaps, the study offers recommendations for policymakers and microcredit providers to design more inclusive and adaptive financial schemes that better support the long-term success of women entrepreneurs in rural Sabah.