Conclusion Case

Conclusion

Microfinance has been in Malaysia for decades. Throughout the few decades, Malaysia has seen

to show progress in the development of microfinance to reduce poverty. More and more

microfinance institutions has seem to appear accordingly due to the needs for it as well as

substantial supports towards microfinance institution no matter at the economic, social or even

politics viewpoint. Microfinance has been also once shown profitable therefore stimulating

growth in microfinance. Microfinance institutions have also believed to made great success in

reaching the poorest of the poor in order to complement to the government's effort to eradicate

poverty. However, microfinance has shown that its effectiveness to reduce poverty as well as its

ability to sustain itself has been a problem in the late 1990s. Microfinance institutions in

Malaysia have been obtaining grants repeatedly and yet still fails to be independent after decades

of operation. It reflects that the microfinance institutions itself is either inefficient or give out

loans without proper consideration or even worse, both.

Microfinance faced downturn mainly due to certain parties seem to misuse the funds allocated

for the poor. In another word, the microfinance institutions have failed to direct the funds

towards their targeted clients. The failure is mainly due to the reason that internal officers are

affected by political issues in approving loans leading to various problems such as increase in

ineffective loans and default in loans. Political influences in microfinance institutions also drift

the aim of targeting poorer clients to those who are not poor enough to obtain services under

microfinance institutions.

Conclusion

Microfinance has been in Malaysia for decades. Throughout the few decades, Malaysia has seen

to show progress in the development of microfinance to reduce poverty. More and more

microfinance institutions has seem to appear accordingly due to the needs for it as well as

substantial supports towards microfinance institution no matter at the economic, social or even

politics