MICROCAPITAL.ORG STORY: Former Founding Member Of Amanah Ihktiar Malaysia And Current Professor At Universiti Sains Malaysia Professor Sukor Kasim Appointed As Government Adviser To Northern Malaysian State Of Perak to Help Address Problems Related To Poverty And Income Disparity

It was recently reported in Malaysia’s Bernama press portal [1] that Professor Sukor Kasim of Universiti Sains Malaysia’s (USM) [2], a tertiary educational institution in Malaysia, will be appointed adviser and consultant to the Perak state government in its bid to narrow income disparities in the state. Perak is a state in the northern half of Western Peninsula Malaysia. Professor Kasim was co-founder of Malaysia’s earliest microfinance NGO, Amanah Ihktiar Malaysia (AIM) [3] in 1986. AIM’s operations were modelled after Grameen Bank [4].

AIM continues to be a functioning MFI in Malaysia and does not currently supply data to the MIX Market portal [5], a database that houses financial and other information on MFIs across the globe. AIM has expanded its operations over the years although according to some commentators, funding and management issues have caused the MFI to experience problems associated with over-indebtedness. Publications on AIM and related issues about microfinance in Malaysia have been set out in the Bibliography section below [6], [7], [8], [9], [10].

Minister or ‘Menteri Besar’ Datuk Seri Dr Zambry Abdul Kadir was quoted as stating that the appointment was strategically aimed at helping the state government address the problem of poverty, particularly ‘hardcore poverty’. Datuk Seri Kadir added that the state government is keen for experts to offer advice on suitable policies and programmes to combat poverty. He recognised that some programmes introduced previously were ‘mere announcements or populist moves’ aimed at drawing public support. Details about the duration of Professor Kasim’s appointment are not known although the report stated that Professor Kasim had in principle agreed to be adviser and consultant to the Perak government.

Datuk Seri Kadir further added that the state government would allocate a portion of the 2010 state budget to address the stark income disparity problem in Perak. He also said the 2010 state budget (which will be announced during the forthcoming state assembly sitting in November) would also include measures to make Perak a business-friendly and high-income state.

It is not known if Professor Kasim’s mandate from the Perak government is restricted to the introduction of microcredit related programmes as a tool to alleviate poverty. Malaysia has been previously classified as a ‘middle income’ country by the World Bank. Poverty has been on the decline in the recent years, according to the latest poverty assessment of the country by the UNDP [11].

By Chinq Yee Chong, Research Assistant

Bibliography

[1] Bernama news agency report entitled ‘Professor Sukor Kasim To Be Appointed Adviser To Perak Government’: http://www.bernama.com/bernama/v5/newsindex.php?id=445117

[2] University Sains Malaysia: www.usm.my/

[3] Amanah Ihktiar Malaysia: www.aim.gov.my/

[4] Grameen Bank: www.grameen-info.org/

[5] MIX Market: www.mixmarket.org/

[6] Microfinance Institution AIM Receives $28 Million Grant From Malaysian Government

[7] MICROCAPITAL.ORG STORY: Exclusive Interview On The Current State Of Microfinance In Malaysia And Challenges Facing The Sector: Observations From The Assistant Governor Of Bank Negara Malaysia

[8] MICROCAPITAL.ORG STORY: As Part of Malaysian Government Initiative, BMB Group and Organization of The Islamic Conference’s (OIC) International Zakat Organization (IZO) Will Launch The World Zakat Fund (WZF) in 2010 With Plans to Raise $750m in First Year

[9] MICROCAPITAL.ORG STORY: Introduction Of Microfinance Scheme In Northern Malaysian State Of Penang – To Help The Poor Or Gain Political Mileage?

[10] MICROCAPITAL STORY: Malaysia Allows International Banks To Provide Microfinance

[11] 2006 UNDP report on Malaysia International Trade, Growth, Poverty Reduction and Human Development: http://www.undp.org.my/malaysia-international-trade-growth-poverty-reduction-and-human-development

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