MICROCAPITAL BRIEF: 31,000 Apply to Malaysian Government’s Interest-free Microcredit Program in First Phase

Malaysia’s Domestic Trade, Cooperatives and Consumerism Ministry (MDTCC) reportedly has announced that for the month of January 2013 approximately 31,000 hawkers and small traders had applied to borrow MYR 9.71 million (USD 3.14 million) through the government’s new microcredit scheme. The program provides interest-free loans ranging from MYR 5,000 (USD 1,600) to MYR 50,000 (USD 16,000) for registered small business owners. MDTCC plans to notify successful applicants by mid-February.

For the year 2011, Amanah Ikhtiar Malaysia (AIM) is the only Malaysian microfinance institution (MFI) providing data to the US-based nonprofit Microfinance Information Exchange (MIX). It reported a gross loan portfolio of USD 383 million. Other financial information is not available.

By Brendan Millan, Research Associate

About Domestic Trade, Cooperatives and Consumerism Ministry (MDTCC)

Established in 1990, MDTCC is a regulatory and development government agency of the Malaysian government. Its purpose is to formulate policy on ethical domestic trade and protect consumer interests. MDTCC issues licenses for the sale and distribution of “essential” goods, monitors market prices and corporate governance practices, administers the country’s intellectual property system and carries out consumer education programs.

Sources and Additional Resources:

[1] The Malay Mail: “31,000 Apply for Micro-credit” by Ikram Ismail, http://www.mmail.com.my/story/31000-apply-micro-credit-46411

MicroCapital.org story, April 23, 2012, “Selangor State Government of Malaysia Launches “WALA” Microcredit Scheme for Rural Women with $1.6m”, https://www.microcapital.org/microcapital-brief-selangor-state-government-of-malaysia-launches-wala-microcredit-scheme-for-rural-women-with-1-6m/

MicroCapital.org story, February 3, 2012, “Malaysian Chinese Association Launches $16.4m Microloan Fund to Train, Finance Entrepreneurs in Malaysia”, https://www.microcapital.org/microcapital-brief-malaysian-chinese-association-launches-16-4m-microloan-fund-to-train-finance-entrepreneurs-in-malaysia/

MicroCapital.org story, December 13, 2011, “Bank Negara Malaysia (BNM) Launches MobileLINK Vehicle to Expand Outreach”, https://www.microcapital.org/microcapital-brief-bank-negara-malaysia-bnm-launches-mobilelink-vehicle-to-expand-outreach/

MicroCapital.org story, June 10, 2011, “Malaysian Microfinance Institution (MFI) Amanah Ikhtiar Malaysia (AIM) to Disburse $164m in Rural Sarawak Region”, https://www.microcapital.org/microcapital-brief-malaysian-microfinance-in…

MicroCapital.org story, July 20, 2011, “Malaysian Government Budgets $10m to Establish Microfinance Lender Malaysian Chinese Women Entrepreneurs Foundation”, https://www.microcapital.org/microcapital-brief-malaysian-government-budgets-10m-to-establish-microfinance-lender-malaysian-chinese-women-entrepreneurs-foundation/

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