The Effectiveness of Micro-Credit (Hijrah) Selangor in Widening the Middle-Income Earners

This study examines on how participants' education, economy and satisfaction contribute to the effectiveness of microcredit scheme known as Hijrah Selangor in widening the middleincome earners group in Selangor. To examine this, a cluster sampling consisting of 210 respondents, who reside and operate their businesses in three different zones, were given a set of questionnaires to gather the information. Several different statistical analyses are conducted with the main analysis being a multiple linear regression analysis. The results indicate that all studied variables; education, economy, and satisfaction have a positive relationship with the effectiveness of Hijrah Selangor. Economy has the most significant relationship and the highest effect on the effectiveness of Hijrah Selangor. The increase in monthly household income of the participants before and after joining the program is found to justify the objective of Hijrah Selangor in widening the middle-income earners group as shown in the demographic data where the monthly household income above RM10,000 has increased significantly from 2% to 60% after joining the program. This research proves that microcredit scheme of Hijrah Selangor is effective in widening the middle-income earners in Selangor and that Hijrah Selangor should be given a top priority in the State Government's agenda to promote and improve the socio-economic growth in Selangor