Enhancing the effectiveness of the Islamic microfinance programme: experience of Lembaga Zakat Selangor

Many experiences around the globe showed that Islamic Microfinance Programs (IMP) based on Shariah and Islamic finance concept, have become more significant in creating new job opportunities and generating income for the purpose of increasing social and economic status of the poor and alleviating po...

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Main Authors:	Hamdan, Hamdino, Othman, Pazim @ Fadzim, Wan Hussin, Wan Sabri
Format:	Article
Language:	English
Published:	Kolej Universiti Poly-Tech MARA 2015
Subjects:	HB126.4 Islamic Economics HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/75712/ http://irep.iium.edu.my/75712/ http://irep.iium.edu.my/75712/1/75712_Enhancing%20the%20effectiveness%20of%20the%20Islamic%20microfinance.pdf

id	iium-75712
recordtype	eprints
spelling	iium-757122019-10-29T08:11:05Z http://irep.iium.edu.my/75712/ Enhancing the effectiveness of the Islamic microfinance programme: experience of Lembaga Zakat Selangor Hamdan, Hamdino Othman, Pazim @ Fadzim Wan Hussin, Wan Sabri HB126.4 Islamic Economics HG3368 Islamic Banking and Finance Many experiences around the globe showed that Islamic Microfinance Programs (IMP) based on Shariah and Islamic finance concept, have become more significant in creating new job opportunities and generating income for the purpose of increasing social and economic status of the poor and alleviating poverty. The integration of entrepreneurial concept, training and microenterprise into IMP also contributes in increasing the effectiveness of the programme. ‘Asnaf Entrepreneurs Development Programme’ (AEDP) conducted by Lembaga Zakat Selangor (LZS) is among the pioneers and most established IMP in Malaysia. The implementation of IMP, which was preceded by selection process of asnaf participant and also accompanied by training and good monitoring, is effective in developing asnaf entrepreneur and improving poor asnaf income. Asnaf entrepreneurs’ development requires not only provision of financing in an interest free-based system but it also needs the provision of other services. The purpose of this paper is to suggest a way to improve the effectiveness of IMP in Selangor. The approach used to measure and evaluate the effectiveness of the IMP in Selangor is based on changes in revenue levels shown by the participants of the program among the poor asnaf and then develop a concept based on the literature review, research findings and comparison with the most successful microfinance programs in Malaysia, namely Amanah Ikhtiar Malaysia (AIM). This paper shows how in the Islamic perspective, spiritual development is necessary in improving the effectiveness of IMP in Selangor. Kolej Universiti Poly-Tech MARA 2015-07 Article PeerReviewed application/pdf en http://irep.iium.edu.my/75712/1/75712_Enhancing%20the%20effectiveness%20of%20the%20Islamic%20microfinance.pdf Hamdan, Hamdino and Othman, Pazim @ Fadzim and Wan Hussin, Wan Sabri (2015) Enhancing the effectiveness of the Islamic microfinance programme: experience of Lembaga Zakat Selangor. Jurnal Evolusi, 4 (1). pp. 13-32. (Unpublished) http://ur.aeu.edu.my/40/1/Jurnal%20EVOLUSI.WanSabri.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HB126.4 Islamic Economics HG3368 Islamic Banking and Finance
spellingShingle	HB126.4 Islamic Economics HG3368 Islamic Banking and Finance Hamdan, Hamdino Othman, Pazim @ Fadzim Wan Hussin, Wan Sabri Enhancing the effectiveness of the Islamic microfinance programme: experience of Lembaga Zakat Selangor
description	Many experiences around the globe showed that Islamic Microfinance Programs (IMP) based on Shariah and Islamic finance concept, have become more significant in creating new job opportunities and generating income for the purpose of increasing social and economic status of the poor and alleviating poverty. The integration of entrepreneurial concept, training and microenterprise into IMP also contributes in increasing the effectiveness of the programme. ‘Asnaf Entrepreneurs Development Programme’ (AEDP) conducted by Lembaga Zakat Selangor (LZS) is among the pioneers and most established IMP in Malaysia. The implementation of IMP, which was preceded by selection process of asnaf participant and also accompanied by training and good monitoring, is effective in developing asnaf entrepreneur and improving poor asnaf income. Asnaf entrepreneurs’ development requires not only provision of financing in an interest free-based system but it also needs the provision of other services. The purpose of this paper is to suggest a way to improve the effectiveness of IMP in Selangor. The approach used to measure and evaluate the effectiveness of the IMP in Selangor is based on changes in revenue levels shown by the participants of the program among the poor asnaf and then develop a concept based on the literature review, research findings and comparison with the most successful microfinance programs in Malaysia, namely Amanah Ikhtiar Malaysia (AIM). This paper shows how in the Islamic perspective, spiritual development is necessary in improving the effectiveness of IMP in Selangor.
format	Article
author	Hamdan, Hamdino Othman, Pazim @ Fadzim Wan Hussin, Wan Sabri
author_facet	Hamdan, Hamdino Othman, Pazim @ Fadzim Wan Hussin, Wan Sabri
author_sort	Hamdan, Hamdino
title	Enhancing the effectiveness of the Islamic microfinance programme: experience of Lembaga Zakat Selangor
title_short	Enhancing the effectiveness of the Islamic microfinance programme: experience of Lembaga Zakat Selangor
title_full	Enhancing the effectiveness of the Islamic microfinance programme: experience of Lembaga Zakat Selangor
title_fullStr	Enhancing the effectiveness of the Islamic microfinance programme: experience of Lembaga Zakat Selangor
title_full_unstemmed	Enhancing the effectiveness of the Islamic microfinance programme: experience of Lembaga Zakat Selangor
title_sort	enhancing the effectiveness of the islamic microfinance programme: experience of lembaga zakat selangor
publisher	Kolej Universiti Poly-Tech MARA
publishDate	2015
url	http://irep.iium.edu.my/75712/ http://irep.iium.edu.my/75712/ http://irep.iium.edu.my/75712/1/75712_Enhancing%20the%20effectiveness%20of%20the%20Islamic%20microfinance.pdf
first_indexed	2023-09-18T21:47:06Z
last_indexed	2023-09-18T21:47:06Z
_version_	1777413523513540608

Enhancing the effectiveness of the Islamic microfinance programme: experience of Lembaga Zakat Selangor

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