Micro‐Finance Capacity Assessment for Poverty Alleviation: Outreach, Viability and Sustainability Available to Purchase

Malaysia introduced its first micro‐financing programme in 1986 to replicate Grameen Bank's successful specialised delivery system, emphasising direct targeting, informality of delivery, and delivering credit to the “doorsteps” of the poor. Since then, micro‐finance programs (MFPs) have been part of the poverty alleviation policies and strategies. MFPs became a popular approach, especially to reach the poor who would normally be excluded from the formal credit sector. This paper evaluates the performance of three MFIs, namely Amanah Ikhtiar Malaysia (AIM), Yayasan Usaha Maju (YUM) and Koperasi Kredit Rakyat (KKR). The paper provides a micro‐finance capacity assessment to identify issues and constraints especially with respect to outreach, viability or sustainability, resource mobilisation, and policy environment.