YAPEIM Empowers Underprivileged Entrepreneurs With Capital Funding

PUTRAJAYA, Oct 2 (Bernama) -- The Malaysian Islamic Economic Development Foundation (YAPEIM) is committed to supporting entrepreneurs from underprivileged backgrounds by providing business capital funding.

YAPEIM’s chief executive officer and director-general, Ameer Ali Vali Mohamed, said the initiative is implemented through the foundation's Entrepreneur Development Programme and Ar-Rahnu Micro Credit Scheme.

He emphasised that developing entrepreneurs is the most effective way to lift people out of poverty.

“There are two approaches to alleviating poverty. We can offer financial assistance on a one-off basis, but when the support ends, the recipient may fall back into poverty—this is akin to giving him fish.

“However, a better approach is to provide the tools to enable self-sufficiency, much like giving a net so the individual can catch fish daily,” he said at a forum titled "Infaq Sector and Fund Management Innovation: Increasing Impact in Social Investment," held today in conjunction with the YAPEIM Regional Forum (FSY) 2024.

Highlighting the success of YAPEIM’s Ar-Rahnu Micro Credit Scheme, Ameer Ali revealed that since its launch by Koperasi YAPEIM Bhd in 2000, the scheme has provided micro-financing for business capital to over 25 per cent of its users.

As of June 2024, YAPEIM's Ar-Rahnu programme has served 968,053 customers.

“This primarily targets small and micro traders who are ‘non-bankable.’ They have the potential to expand but lack access to capital. We allow them to purchase gold, which can be used as collateral to secure business funding.

“This is one of our efforts to assist non-bankable, unserved, and underserved entrepreneurs,” he said.

Ameer Ali added that Ar-Rahnu YAPEIM currently operates 203 branches, six mobile units, and employs over 1,000 staff nationwide.

Meanwhile, the founder and managing director of Niaga Compliance (Brunei), Lailatul Zubaidah Hussain, a forum panel member, highlighted the need for non-governmental organisations (NGOs) to adopt sustainable business models for their charity programmes.

She noted that NGOs could ensure financial sustainability by forging partnerships and maintaining strong relationships with key stakeholders, including government agencies and the corporate sector.

“It’s crucial to maintain these relationships, as key stakeholders possess influence. With that influence, we (NGOs) can extend our reach and achieve greater impact,” she said.

Yayasan Hasanah’s managing director, Siti Kamariah Ahmad Subki, added that charities must uphold good governance in managing public funds to avoid eroding public trust.

“Distrust is a significant challenge when handling large sums of public funds. Misuse of power or funds can undermine our efforts.

“We must ensure that trust in public funding remains high and take proactive measures to manage funds effectively,” she said.

YAPEIM is an agency under the Prime Minister's Department (Religious Affairs).

Established on October 13, 1976 and re-launched in 1984, it plays a role in the welfare of the ummah in Islamic economic development, providing educational assistance to target groups, organising community programmes, either on a long term or one-off basis, as well as giving charitable donations to who those who need it.

-- BERNAMA