The Effectiveness of Amanah Ikhtiar Malaysia (AIM) in Reducing Rural Poverty : A Case Study of Pokok Sena, Kedah

Poverty eradication efforts in Malaysia is the most important agenda by Malaysia government’s and increasingly intensified after the launched of New Economy Policy (1970-1990). Nevertheless, poverty still exists especially in rural area which occupied by Malays although various efforts have been made, includes assistance in the form of subsidies, agricultural inputs and followed by the establishment of various government agencies which aims to increase income and reduce poverty. Recognizing this, Amanah Ikhtiar Malaysia (AIM) was established aims to reduce poverty through a structured and professional approach. The purpose of this study is to identify the effectiveness of the AIM program in reducing poverty among low-income households in rural areas. This study was conducted in Kampung Bukit Payong, Pokok Sena, Kedah. Using a sample of 55 AIM members which is collected with self-administered questionnaires, this study focuses on changes in income, assets owned and the happiness of borrower before and after joined the AIM program. To study the effectiveness of the AIM program, three methodologies have been identified namely Two-Population Mean Test, Chi-Square Independent Test and the Probit Model. The study found there is a significant change of AIM member’s income, total assets held and the level of happiness than before joining AIM. This study was proven that the AIM program is effective and has achieved the objectives that have been identified. The results of studies, found that income of AIM member’s has increase after they joined AIM program. In addition, respondents also expressed their satisfaction level on what has been done by the AIM in helping rural communities deal with the problem of poverty.