This study examines the well-being of micro-entrepreneurs participating in Amanah Ikhtiar Malaysia (AIM) in

Selangor through the lens of the Sustainable Livelihood Framework (SLF). Specifically, it analyses asset

ownership, socio-economic vulnerability, resilience strategies, and their influence on well-being. A structured

quantitative approach was employed, using a questionnaire distributed to 375 AIM participants across seven

policy relevance for sustainable entrepreneurship and poverty reduction.

Keywords: Amanah Ikhtiar Malaysia (AIM); Sustainable Livelihood Framework; Asset Ownership; Well-

being; Malaysia Development Plans.

progress in reducing absolute poverty over the past decades, challenges persist among vulnerable groups,

particularly within the B40 income segment. To address this, Malaysia’s 11th and 12th Development Plans have

emphasised inclusive economic participation, entrepreneurship development, and microcredit support as key

mechanisms for improving the socio-economic position of low-income households. Within this policy

landscape, microcredit schemes play a crucial role in promoting self-reliance, strengthening livelihoods, and

household resilience and promoting sustainable entrepreneurship.

The relationship between asset ownership and well-being is well established in the development literature. Asset

ownership provides individuals and households with resources, capabilities, and security to sustain their

livelihoods, particularly during times of economic uncertainty. In the Malaysian context, understanding how

these assets contribute to well-being is vital for designing effective poverty alleviation strategies and ensuring

policy continuity. However, while previous studies have acknowledged the importance of assets, few have

systematically examined their influence on well-being through a comprehensive framework such as SLF.

This study aims to address this gap by assessing the level of asset ownership, socio-economic vulnerability,

resilience strategies, and well-being among AIM participants in Selangor. By applying a structured quantitative

design involving 375 respondents across seven constituencies, the study seeks to provide evidence-based insights

provides access to capital for low-income households who are typically excluded from formal financial systems.

In Malaysia, microcredit programme particularly through Amanah Ikhtiar Malaysia (AIM) as play a crucial role

in supporting entrepreneurship and improving household livelihoods. Numerous studies have shown the

effectiveness of these programmes in increasing household income, asset accumulation, and overall well-being.

Hussain et al. (2018) emphasise that income and consumption are key indicators of microcredit effectiveness in

addressing poverty, particularly in developing economies. Similarly, Zaimah (2010) found that AIM participants

in Kedah used microcredit not only to finance their enterprises but also for household needs such as home

renovation and education. This suggests that microcredit contributes indirectly to well-being through both

productive and social investments.

Abdullah, Sazali, and Malarvizhi (2010) also observed that AIM participation significantly increased the market

Furthermore, Abdullah et al. (2011) showed that higher loan amounts were positively correlated with increased

asset ownership, reduced unemployment, and improved living standards among extremely poor households.

Similarly, Saifoul et al. (2012) found that AIM microcredit had an equalising effect on income inequality,

demonstrating its role in narrowing socio-economic gaps. Zaini, Supian, and Norziani (2012) confirmed that

microcredit financing through AIM remains an effective mechanism for reducing poverty in rural Malaysia and

complements government programmes.

While much of the early literature focused on income indicators, more recent approaches have applied the

Sustainable Livelihood Framework (SLF) to capture the multidimensional nature of well-being. Introduced by

Chambers and Conway (1992) and popularised by the Department for International Development (DFID) in

assets are better equipped to withstand shocks, invest in productive activities, and sustain higher levels of well-

being.

Various development organisations including United Nations Development Programme (UNDP), CARE, and

poverty research, frames sustainable livelihoods as secure access to resources, stocks, and activities needed to

Asset Ownership and Well-Being

The relationship between asset ownership and well-being has been extensively documented in development

research. Financial assets provide capital for expanding businesses and securing income; human assets—such

as skills, knowledge, and education—enhance productivity and adaptability; physical assets, such as equipment

and infrastructure, support business continuity; and social assets facilitate resource sharing, access to markets,

narrowly on income without integrating broader livelihood dynamics. Few studies have examined how specific

asset types differentially affect well-being. In addition, the impact of external shocks such as the COVID-19

pandemic on asset utilisation and resilience remains underexplored. Gender differences and sectoral variations

have also been largely overlooked, which limits the precision of policy recommendations.

This study adopts the DFID (1999) version of the Sustainable Livelihood Framework to analyse how asset

ownership influences well-being among AIM participants in Selangor. The framework allows for a

multidimensional examination of how financial, human, physical, social, and natural assets contribute to

livelihood outcomes. In particular, this study emphasises: (i) the direct and indirect effects of asset ownership

on subjective well-being, (ii) the role of assets in buffering socio-economic vulnerability, and (iii) the interaction

This study employed a quantitative research design to examine the relationship between livelihood asset

ownership and well-being among participants of Amanah Ikhtiar Malaysia (AIM) in Selangor. The Sustainable

Livelihood Framework (SLF) served as the conceptual foundation to capture the multidimensional nature of

livelihoods, focusing on financial, physical, human, social, and natural assets. This structured quantitative

approach was selected because it allows for systematic measurement of relationships between variables and

ensures a high degree of statistical reliability and generalisability.

The study involved 375 respondents, representing AIM participants across seven state constituencies in Hulu

Langat, Selangor: Sungai Gabai, Sungai Ramal, Sungai Chua, Sungai Tangkas, Bukit Mewah, Beranang, and

Semenyih. This relatively large sample size enhances representativeness and provides a robust foundation for

ensured that the sample accurately reflected the socio-economic characteristics of micro-entrepreneurs in the

A structured questionnaire was developed based on the Sustainable Livelihood Framework to measure five key

domains:

Section D: Resilience strategies

Section E: Subjective well-being

All items were measured using a five-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree).

Content validation was carried out by academic experts and AIM officers to ensure relevance, clarity, and

cultural appropriateness. A pilot test involving 50 respondents was conducted, and the Cronbach’s alpha

coefficients for all constructs exceeded 0.80, demonstrating high internal consistency.

Data collection was carried out through field surveys administered by trained enumerators to ensure data

accuracy and to accommodate participants with varying literacy levels. Participation was voluntary, and

informed consent was obtained from all respondents prior to data collection. Ethical approval for this study was

Asset ownership explains 47% of the variance in well-being, with financial and human assets being the strongest

Social assets also deserve attention, as networks and collective action can help entrepreneurs better manage risks.

economic base compared to other Malaysian states. Caution should therefore be exercised when generalising

these findings to other regions with different socio-economic contexts.

This study contributes to the growing body of research integrating SLF with microcredit evaluation. By

participants, it strengthens the argument that microcredit is most effective when it is accompanied by asset-

building mechanisms. The findings reaffirm the relevance of SLF as an analytical tool for understanding how

different assets interact to produce livelihood outcomes in developing country contexts.

This study provides empirical evidence on the strong and positive relationship between livelihood asset

ownership and well-being among micro-entrepreneurs who are participants in Amanah Ikhtiar Malaysia (AIM)

contributes to sustainable livelihoods. They also confirm that microcredit functions not merely as a financing

tool, but as an enabler for broader socio-economic empowerment when embedded within a supportive policy

environment.

microcredit institutions to go beyond providing credit. Programmes should integrate targeted capacity-building

activities such as digital skills training, business development support, and financial literacy to enhance

participants’ ability to use credit productively.

strategies to other states could help address regional disparities. Policy frameworks should also incorporate

monitoring systems to assess the differential impact of microcredit across urban, semi-urban, and rural settings.

emphasise inclusive growth, economic participation, and poverty reduction. Embedding SLF principles into

microcredit and entrepreneurship policies can provide a more holistic approach to strengthening livelihoods and

enhancing household well-being.

Limitations and Future Research

Although this study contributes valuable empirical evidence on the relationship between livelihood asset

ownership and well-being among participants of Amanah Ikhtiar Malaysia (AIM), several limitations should be

Second, the study employed a cross-sectional design, which captures relationships at a single point in time. This

limits the ability to assess causal dynamics or long-term changes in well-being. Incorporating longitudinal

research designs would enable future studies to track how asset accumulation, resilience, and well-being evolve

over time, particularly in response to economic cycles or external shocks.

Third, while the study focused on asset ownership as a primary determinant of well-being, it did not disaggregate

the analysis by gender, age, or business sector. Existing research suggests that these demographic and enterprise-

level factors can significantly influence livelihood strategies and outcomes. Future research should incorporate

stratified analyses to better identify targeted policy and programme interventions.

Fourth, this study relied exclusively on quantitative methods. Although this approach allows for statistical

generalisation, it does not capture the nuanced experiences of micro-entrepreneurs. Qualitative methods—such

By addressing these limitations, future studies can deepen the understanding of asset–well-being dynamics,

enhance the applicability of the Sustainable Livelihood Framework (SLF) in microcredit research, and

strengthen the evidence base for inclusive entrepreneurship and poverty reduction strategies in Malaysia and

beyond.