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 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 Tables of Contents: No 1.0 1.1 1.2 1.3 1.4 1.5 1.6 2.0 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 2.1.7 2.1.8 2.1.9 2.1.10 2.1.11 2.1.12 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.3 2.3.1 2.3.2 2.3.3 2.4 2.4.1 2.4.2 2.4.3 2.4.4 Contents Chapter 1: INTRODUCTION Introduction Background of the study Problem Statement Research Questions Research Objectives Significance of the study Organization of the study Chapter 2: LITERATURE REVIEW Introduction Poverty and Microcredit Global poverty Scenario Definitions of Poverty Level of Poverty Indicators of Poverty How to Reduce Poverty How Microcredit leads to a decrease in Poverty rate – based on Income and Asset Establishment of Microcredit Microcredit characteristics of Grameen Banks Microcredit Program and Client Selection Process Products and Services of Microcredit Sample Models of Microcredit in The World Outreach of Microcredit Impact of Microcredit Study Contents: Microcredit in Malaysia Malaysia Economy Poverty in Malaysia Poverty Eradicating Policies Microcredit Organizations in Malaysia AIM (Amanah Ikhtiar Malaysia) Background AIM’s Products and Services The impacts of AIM’s Services Review of Methodology Conceptual Model Quantitative and Qualitative Study Question Design Sample Selection Process Chapter 3: Research Methodology Page No 1 5 10 10 12 14 16 20 21 23 23 26 27 29 30 33 33 34 36 39 45 45 46 51 53 53 55 55 56 List of Tables No 2.1.1 2.1.2 2.2.1 Contents Terms Used to Describe Poverty Results of the Verification Process (12/1999 to 12/2009) Special Target Group Page No 13 30 39 List of Figures No 2.1 2.2.1 2.4.1 Contents Percent of people in the world at different poverty levels in 2005 Malaysia’s GDP (purchasing power parity) in 2007-2009 HOUSEHOLD ECONOMIC PORTFOLIO MODEL (Chen and Dunn, 1996) Page No 11 34 54 ... characteristics of Grameen Banks Microcredit Program and Client Selection Process Products and Services of Microcredit Sample Models of Microcredit in The World Outreach of Microcredit Impact of Microcredit... 55 56 List of Tables No 2.1.1 2.1.2 2.2.1 Contents Terms Used to Describe Poverty Results of the Verification Process (12/1999 to 12/2009) Special Target Group Page No 13 30 39 List of Figures... 2.4.3 2.4.4 Contents Chapter 1: INTRODUCTION Introduction Background of the study Problem Statement Research Questions Research Objectives Significance of the study Organization of the study