Islamic Microfinance in Malaysia: Issues and Challenges

  • Salina Hj KassimEmail author
  • Siti Nadhirah Kassim
  • Nadhrah Othman
Conference paper


In many countries, microfinance has been proven to be an effective tool in enabling the low-income segment of the society to borrow and kick-start small businesses. There are three important microfinance institutions in Malaysia, namely, Amanah Ikhtiar Malaysia (AIM), Yayasan Usaha Maju (YUM), and Tabung Ekonomi Kumpulan Usahawan Niaga (TEKUN). In accordance with Islamic law, any element of usury must be avoided entirely in economic transactions, hence resulting in the imposition of management fees on the borrowers instead of interest. This chapter seeks to study the issues and challenges faced by Islamic microfinance institutions in the Malaysian context.


Islamic microfinance Low income AIM Malaysia 


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Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  • Salina Hj Kassim
    • 1
    Email author
  • Siti Nadhirah Kassim
    • 1
  • Nadhrah Othman
    • 1
  1. 1.International Islamic UniversityGombakMalaysia

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