EMPOWERING THE SOCIO ECONOMY OF SAHABAT AIM IN MALAYSIA THROUGH ISLAMIC SOCIAL FINANCE

Transcription

1 Seminar on Islamic Microfinance for Poverty Alleviation in OIC Member Countries EMPOWERING THE SOCIO ECONOMY OF SAHABAT AIM IN MALAYSIA THROUGH ISLAMIC SOCIAL FINANCE Dr Zubir bin Harun Executive Chairman AIM Empowering the Socio Economy of Low Income Households is the Responsibility of AIM Workforce

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3 Narrated by Abu Hurairah, The Messenger of Allah SAW said: Whosoever removes a worldly grief from a believer, Allah will remove from him one of the griefs of the Day of Judgment Hadith Riwayat Muslim

4 Our roles in helping the poor We trust the poor We create bankable individuals We develop self-esteem We provide job opportunities We make the poor, TRUSTWORTHY AND BANKABLE

5 Established since 1987 Malaysia s first NGO Microfinance Institution Malaysia s largest Microfinance Institution with lowest NPL rate (1.3%) Awarded Best Islamic Microfinance Institution by Global Islamic Financial Awards (GIFA) for three consecutive years Best Islamic Microfinance Institution (2015) Best Islamic Finance Case (2015)

6 AIM Champion in Islamic Microfinance Institution in Malaysia, Leader in Islamic Microfinance Model internationally. Full fledge for accreditation and Syariah compliance in the organization Develop programs for zakat and wakaf focus Sahabat transformation Engagement with Islamic Institution and corporates companies in Malaysia Recognition and Award from International Agencies / Organizations

7 Low Income Earning Below USD 722 / Month (RM 3080 / Month) Target Groups Hard core Poor Earning Below USD 106 / Month (RM 457 / Month) Poor Earning Below USD 170 / Month (RM 733 / Month)

8 MODEL OF AIM IN ALLEVIATE POVERTY AMONG SAHABAT AIM Transform the poor from Bottom- 40% to Middle Income Accelerate income improvement from RM1500 to more than RM4000 per household /month Increase integration from AIM s ecosystem Enable continuous loan and productivity B40 households refer to households with income up to RM3,855 (based on Household Income and Expenditure Survey 2014) is where a large proportion has tertiary education and engages in high paying jobs.

9 Performance RM 14 billion RM 2.4 billion 370,000 Repayment Rate 98.7 % Average Loan Size (RM) 6,486 Portfolio At Risk 1.3% Financial Self-Sufficiency 5 cent

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11 to increase the sense of responsibility and chances among staffs and members (Sahabat) to pay zakat through AIM 1. AIM AS AGENT OF COLLECTION Appointed by 6 states in Malaysia as zakat collector Selangor since December : Kedah and Pulau Pinang, 2016: Negeri Sembilan, Pahang and Perak.

12 Collection of zakat in AIM as follow: Year Total Collection Collection From Collection From Of Zakat (RM) Staffs (RM) Members (RM) ,243, ,243, ,022, ,022, ,043, ,031, , Average 1,103, Awarded by Lembaga Zakat Selangor (LZS) twice; a. The Best Agent in Selangor, in 2013 b. The Best Agent Private Sector in Selangor, in 2014

13 2. Zakat Collection Program For Sahabat: Program Usahawan Berzakat Collaborate with 6 State Islamic Council appoint as Agent for Zakat Collector among Sahabat AIM Program Zakat Payment for Sahabat, collection period once a year Start : 2015, Pilot in Kedah Total Payers 2015 : 600 payers, RM12,000

14 3. Corporate Zakat / Agent Distribution Zakat Distribution Corporate Organization Zakat Institution Distribute Zakat Corporate on behalf of the corporate to the poor Distribute Zakat by the agent at 1/8 of total collection of zakat

15 To alleviate poverty through development of fixed asset for members using wakaf fund Selangor Wakaf Corporation Selangor- Ikhtiar Wakaf Fund WAKAF DEVELOPMENT Strategic Partner IDB Group

16 GENERAL CONCEPT OF ASSET DEVELOPMENT CLIENTS WAKAF FUND ASSET DEVELOPMENT POOR MICROENTERPRENEURS WAKAF INDUSTRIAL PARK NEW GENERATION CHILDREN OF THE POOR MICRO- ENTERPRENEURS WAKAF BUSINESS PARK CREATIVE BUSINESS INCUBATOR MUSLIM COMMUNITY 16

17 Poor Microenterpreneur Development Programs WAKAF FUND Wakaf Industrial Park Wakaf Business Park Creative Business Incubator Office Lot Baazar Lot 2 units (24 x 62 ; with 2,976 square feet for each) 4 units (24 x 62 ; with 888 square feet for each)

18 The purpose of Infaq fund in AIM is to reduce the financial burdens of members during difficulties.

19 The fund was distribute to four main categories as follow: CSR - Community Wellbeing & Welfare Health Impact of Natural Disaster AIM contribute 2.5% yearly to Infaq Fund AS OF 2015, OUR TOTAL INFAQ DISTRIBUTION IS RM 325,000. HIGHEST GOES TO IMPACT OF NATURAL DISASTER 77% FROM TOTAL DISTRIBUTION 19

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21 THANK YOU Menara Amanah Ikhtiar, No.3, Jalan Cempaka SD12/1A, Bandar Sri Damansara PJU9, Kuala Lumpur Malaysia www. aim.gov.my

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23 INCOME SCALE PERCENTAGE RM USD % < 4,000 < % 4,000-5, , % 6,000-7,999 1,488-1, % 8,000-9,999 1,984-2, % 10,000-15,000 2,480-3, % >15, 000 > 3, % TOTAL 1 MYR = USD 100.0%

24 INCOME SCALE NUMBER OF SAHABAT PERCENTAGE RM USD PEOPLE % < 4,000 < , % 4,000 4, ,240 31, % 5,000 5,999 1,240-1,488 27, % 6,000 6,999 1,488-1,736 17, % 7,000 7,999 1,736-1,984 10, % 8,000 8,999 1,984-2,232 1, % 9,000 9,999 2,232-2,480 4, % 10,000 12,000 2,480-2,976 5, % 12,001 15,000 2,976-3,720 2, % >15, 000 > 3,720 2, % TOTAL 1 MYR = USD 295, %

25 Jika perlu sahaja Based on Maqasid Syariah, five basic human requirements of life are i) Religion ii) physical self iii) knowledge iv) dignity, v) wealth. a. Social problems refer to impact of poverty felt by whole society, or ummah such as unemployment b. Ideological problems refer to impact of poverty of single Muslim toward his or her obligation to Allah and ummah, and may lead to kufur. 25

26 HOW DO WE RUN THE PROGRAM - 1. DISTRIBUTE MEMO WHEN THE TIME FRAME TO DO COLLECTION BY CEO ZON 2. REGION MANAGER DISTRIBUTE MEMO TO BRANCHES 3. FIELD OFFICERS WILL INFORM ALL MEMBERS REGARDING ZAKAT COLLECTION TIME FRAME 4. COLLECTION DAY MEMBERS PAY AFTER WEEKLY MEETING, AT MEETING CENTER 5. BRANCH OFFICERS WILL BANK IN TO THE ZAKAT INSTITUION ACCOUNT, THE MONEY COLLECTED, ON THE SAME DAY 6. ZAKAT INSTITUTION WILL PRODUCE ZAKAT, PAS TO BRANCH MANAGER TO DISTRIBUTE TO PAYEES (MEMBER)

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