




































American International Journal of Multidisciplinary Scientific Research  
Vol. 9, No. 1; 2021  

                                       ISSN 2638-1249   E-ISSN 2638-1273  
Published by CRIBFB, USA  

 

1  

THE MICROFINANCE INSTITUTIONAL SUSTAINABILITY 

AND EMPOWERMENT OF WOMEN BORROWER’S IN 

MALAYSIA: AN EMPIRICAL REVIEW  
  

Ali Arshad1, Abul Bashar Bhuiyan2,  Aza Azlina Md Kassim3, Md Jafor Ali4, Muhammad Saad5,  
1, 2, 3Faculty of Business and Accountancy, Universiti Selangor, Malaysia  

4 Faculty of Business Administration, Islamic University, Bangladesh  
5 Fast School of Management, National University of Computer and Emerging Sciences, Pakistan  

  

ABSTRACT  

The fundamental aims of this study to construct a new framework between Microfinance 

Institution’s (MFIs) financial sustainability and social, economic and household women 

empowerment in Malaysia. The study used both quantitative and qualitative approach. The study 

used available online empirical recourses by the name of Microfinance Institution’s (MFIs) 

sustainability and sustainable and social, economic and household women empowerment in 

different online database sources such as Google Scholars, Springer Link, Wiley, Science Direct, 

JSTOR, Emerald full text, Scopus, and EBSCO HOST etc.  The summary of literature review 

revealed that it is the unique goal of MFIs for poverty reduction mission through ensuring of 

financial sustainability while contribution impact in the society. It has also revealed that it is the 

way the social mission of poverty alleviation through serving the poorest has been overshadowed 

by profit motive. However, profit orientation of the microfinance industry also emphasis on profit 

earning. The present study will be recommended for policy considerations for the successful and 

effective operation of microfinance programs by providing the necessary guidelines for the proper 

utilization of loan for women borrowers in Malaysia.  

  

Keywords: Microfinance, Institutional Sustainability, Empowerment, Women Borrower, 

Malaysia  

  

INTRODUCTION  

Poor women are ignored in most parts of the society. They are marginalized and have no 

opportunities for self-sufficiency, and thus, become dependent on charity or welfare. Hence, poor 

women lose their self-confidence because they cannot be fully self-supporting. Denied 

opportunities deprive poor women of the pride of accomplishment. This situation, in turn, leads to 

psychological, social, and mental health problems.  

As a result, some started believing that access to private capital is the only path to establish 

sustainable and effective microfinance program (Akula, 2010; Chen et al., 2010). Conversely, it 

also proves as profitable industry to investment for institutional investors (Evans, 2010; Gokhale, 

2009b). The industry therefore, witness a rapid transformation and commercialization that intended 

for profitable microfinance services (Berger, Goldmark, & Sanabria, 2006; Briere & Szafarz, 2015; 

Campion, White, & Network, 1999; Chahine & Tannir, 2010; Chen et al., 2010; Christen & Drake, 

2002; Drake & Rhyne, 2002; Hishigsuren, 2006; Janda & Zetek, 2014; Ledgerwood & White, 



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2006; Poyo & Young, 1999; Radhakrishnan, 2015; Rhyne, 2001, 2008; Rosenberg, 2007; Siriaram 

& Upadhyayula, 2004; M. Sriram & Upadhyayula, 2002; M. S. Sriram, 2010; Tiwari & Anjum, 

2015; G. Woller, 2002).  

It triggered the tension that MFIs’ original mission of poverty alleviation might 

overshadowed by the profit orientation; generally known as mission drift that has illustrated in 

various studies (Abeysekera, Oguzoglu, & Le, 2014; Abrar & Javaid, 2014; Beatriz Armendariz, 

D'Espallier, Hudon, & Szafarz, 2011; Beatriz Armendáriz & Szafarz, 2011a; Caserta & Reito, 

2013; Christen & Cook, 2001; Robert Cull et al., 2007; Evans, 2010; Ferdousi, 2015; Frank, Lynch, 

& Schneider-Moretto, 2008; B. Gutiérrez-Nieto, Serrano-Cinca, & Mar Molinero, 2009; N. 

Hermes et al., 2011; Kar, 2012, 2013a; R. Mersland & Strøm, 2010; Nurmakhanova et al., 2015; 

Olivares-Polanco, 2005; Piot-Lepetit & Nzongang, 2014; S. Quayes, 2012, 2015). Nevertheless, 

not all above studies found evidence of mission drift rather indicated mixed and conflicting results 

that makes the concern more complex and demanded more empirical studies.  

However, including academics, global media and the pioneer of microcredit Muhammad 

Yunus express their deep concern on this movement (Bajaj, 2010; Burgis, 2008; Business, 2007; 

Economist, 2008, 2009; Evans, 2010; Gokhale, 2009b; Malkin, 2008; Salmon, 2011; Saltmarsh & 

Contiguglia, 2009; Mohammad Yunus, 2010). Though some reports pointed institutional investors 

are behind the reason of mission original, despite they are also well aware about their double 

bottom line of investment in microfinance (Brau, Cardell, & Woodworth, 2015; Dieckmann, 

Speyer, Ebling, & Walter, 2007; Ding, Sun, & Au, 2014; Goodman, 2006; Ledgerwood, Earne, & 

Nelson, 2013; Renneboog, Ter Horst, & Zhang, 2008; Rajdeep Sengupta & Craig P Aubuchon, 

2008; Steger, 2012; Wilburn & Wilburn, 2014).  

Empowerment is a means to achieve basic opportunities for poor women. Empowerment 

includes encouraging and developing the skills for self-sufficiency, with a focus on eliminating the 

future need for charity or welfare. In spite of remarkable economic growth, reducing the inter-

ethnic income disparity and the economic imbalance, especially hard-core poverty and women 

empowerment, is the prime threat to declare Malaysia as a completely developed country by 2020. 

Existing literature reveals limited studies on the assessment of AIM microcredit performance 

concerning the success stories of women empowerment in Malaysia. Thus, this study will analyze 

the contribution of AIM to the household income and the empowerment of poor women borrowers 

in Malaysia. This research will propose the future direction for the effective use of credit for IGAs 

and the development of poor women in Malaysia.  

  

Background of the study  

The revolution in microfinance industry was observed after the year 1974 when Muhammad 

Younus established Grameen Bank in Bangladesh. During the early days of 2011, microfinance 

achieved a milestone of reaching more than 200 million poor across the globe (Maes & Reed, 

2012). According to the data reported to MIX market in 2014, the total gross loan portfolio of 

MFIs has reached 78 billion USD. Therefore, microfinance was considered as a best available tool 

for sustainable development and growth. This was also endorsed as Muhammad Younus received 

Nobel Prize in 2007 for their contribution to reducing poverty through microfinance.   

There are two major goals for microfinance institutions (Chenuos et al., 2014). The first 

goal of MFI is to contribute to development by approaching a maximum number of clients and 

reaching the poorest (Nanayakkara, 2012). The second important goal for MFIs is to reach poor 

clients by achieving financial sustainability. According to Olasupo et al. (2014), MFIs management 

should be efficient in promoting both the objectives. G. M. Woller et al. (1999) also introduced 



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two approaches known as “the Institutionist approach” and “the Welfarist Approach.” Institutionist 

approach sticks with financial sustainability of institutions and poverty alleviation simultaneously 

whereas, Welfarists approach emphasized on reaching poor clients by using subsidized funds.  

Since microfinance, promises to develop its customers and provide capital to overcome 

poverty. Therefore, understanding of MFIs sustainability is essential for the well-being of 

individuals and business (Muwamba, 2012). The sustainability achievement, in this case, means 

attaining the financial sustainability along with the attainment of reduction in poverty level 

(Nanayakkara, 2012). The term sustainability was commonly used in many fields such as 

environmental science, development economics, and agricultural sector development, particularly 

in the developing world where agriculture is the major economic sector or covers the significant 

share of the gross domestic production of the countries. Sustainability is commonly known as the 

organization's ability to cover both its operational and financing cost from its revenues and also 

expanding its services (M. W. Rahman & Luo, 2012). Chaves and GonzalezVega (1996) views 

sustainability as the organization’s ability to use its financial resources or borrowings on market 

rates for providing financial services on regular basis. Okumu (2007) cited the definition of 

sustainability as the institution's ability to generate enough reserves for capitalization by covering 

its operational cost.  

  

PERFORMANCE OF MICROFINANCE INSTITUTIONS  

Sustainability normally taken as recovery of the full cost of MFI or generating sufficient profit to 

continue the operations of MFIs without depending on external supports by donors and government 

subsidies (CGAP, 2004). It is commonly used as financial aspects by researchers regarding 

financial sustainability only. Financial sustainability was one of the key measurement variables for 

sustainability of microfinance institutions (Ayayi & Sene, 2010; Basharat, Hudon, & Nawaz, 2015; 

M. W. Rahman & Luo, 2012; Sekabira, 2013; Tehulu, 2013). Several studies have mentioned that 

for an MFI to be sustainable, it should be financially self-sufficient (Gibbons & Meehan, 1999; 

Kar, 2013b; Kinde, 2012; Morduch, 1999a).  

However, Bhanot, Bapat, and Connelly (2015) mentioned that in reaching sustainability, 

financial sustainability is just one dimension. Under ‘Welfarist Approach’, for an institution to be 

sustainable, the core function of MFIs were to reach the maximum poor clients (Hulme & Mosley, 

1996; Kipesha & Zhang, 2013; Morduch, 2000; G. M. Woller et al., 1999). Mahajan and Ramola 

(1996) measures the sustainability of MFIs by using financial sustainability and outreach. They 

were concerned that increase in focus on financial sustainability may result in the shift in outreach. 

Millson (2013) also measures sustainability regarding both financial sustainability and outreach to 

the poor.  

  Morduch (2000) clearly discuss the winning proposition for sustainability of MFIs if both 

costs of operation and maximum outreach to the poor people achieved without external support by 

donor’s funds or government subsidies. Shahidur R Khandker and Khalily (1996) discuss the 

sustainability of Bangladesh Rural Advancement Committee’s regarding financial viability, 

institutional sustainability and sustainability of targeted beneficiaries. In their study, financial 

viability approximates program ability to recover its cost of operation from its revenues. 

Institutional sustainability approximate MFIs ability to continue its activities on a sustained basis 

and beneficiaries’ sustainability implies the positive impact of microfinance services on the growth 

of recipients and their ability to repay their loan within given time frame (Shahidur R Khandker & 

Khalily, 1996).  



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The triangle of microfinance introduced by Zeller and Meyer (2002) also support the above 

studies. According to Zeller, successful microfinance institutions should be financially sustainable, 

have positive outreach to the poor and should be helpful in poverty alleviation. Yaron (1992) also 

considers financial sustainability and outreach as a benchmark for sustainable MFIs if subsidy 

dependence is zero. Thus, sustainability of MFIs can be measured using financial sustainability and 

outreach (Annim, 2012; S. Quayes, 2012; Zeller & Meyer, 2002). Rauf and Mahmood (2009) uses 

six dimensions of outreach to approximate MFIs performance. They used OSS and FSS to 

determine cost and length of outreach. Under institutionalist view, Kipesha and Zhang (2013) found 

that outreach has a positive correlation with both profitability and sustainability measures. 

Simultaneously, using Welfarists approach, results does not show the tradeoff between outreach 

and sustainability.  

Outreach and financial sustainability have an active relationship with MFIs sustainability 

(Louis, Seret, & Baesens, 2013). Also, MFIs can achieve sustainability if they increase outreach 

to target poor and achieve financial sustainability simultaneously (De Crombrugghe, Tenikue, & 

Sureda, 2008). MFIs, to remain sustainable, should use appropriate processes and structures to 

facilitate its customers and continue its operations without any interruption (Rao, 2014).  

  

Sustainable Microfinance Institutions  

There are large number of microfinance programs are still depending on donor subsidies to meet 

the high costs, which means they are not institutional sustainable (Niels Hermes & Lensink, 2011). 

In the 1990s, the issue of financial sustainability of microfinance institutions gave rise to an 

important debate between the financial systems approach and the poverty lending approach 

(Robinson, 2001). The financial systems approach emphasizes the importance of financially 

sustainable microfinance programs (Robinson, 2001). This approach stresses the importance of 

being able to cover the cost of lending money out of the income generated from the outstanding 

loan portfolio and to reduce operational costs as much as possible (Robinson, 2001).   

On the other hand, the poverty lending approach, however, concentrates on using credit to 

help overcome poverty, primarily by providing credit with subsidized interest rates (Robinson, 

2001). The advocates of this approach argue that the poor cannot afford higher interest rates 

(Robinson, 2001). Therefore, aiming at institutional sustainability ultimately goes against the goal 

of serving large groups of poor borrowers (Niels Hermes & Lensink, 2011). In other words, there 

is a trade-off between sustainability and outreach (Beatriz Armendáriz & Szafarz, 2011b; Robert 

Cull, Demirgüç-Kunt, & Morduch, 2011; Robert Cull & Morduch, 2007; Niels Hermes & Lensink, 

2011; N. Hermes et al., 2011). The proponents of the financial services approach, however, claim 

that empirical evidence neither shows that the poor cannot afford higher interest rates, nor that 

there is a negative correlation between the financial sustainability of the institution and the poverty 

level of the clients (N. Hermes et al., 2011). During recent years, the debate appears to have been 

settled in favor of the proponents of the financial systems approach (Niels Hermes & Lensink, 

2011). In fact, the importance of striving for institutional sustainability has been embraced by most 

parties involved in the microfinance discussion (Niels Hermes & Lensink, 2011).   

In parallel with this development, donors, policy makers, and other financers of 

microfinance have recently made a shift from subsidizing MFIs institutions toward a focus on 

financial sustainability and efficiency of these institutions (Niels Hermes & Lensink, 2011). 

Among other things, this increased focus on financial sustainability and efficiency is due to a 

number of developments the microfinance business has been recently confronted with, such as the 

increasing competition among MFIs, the commercialization of microfinance, technological change 



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that also has become available for, and implemented in microfinance, and financial liberalization 

and regulation policies of the government (Rhyne & Otero, 2006).  

At the same time, however, there remains a huge variety in MFIs in terms of their financial 

sustainability. According to rough estimations, only 1–2% of all MFIs in the world (i.e., some 150 

organizations) are financially sustainable (Niels Hermes & Lensink, 2011). In most cases, these 

are larger, mature, regulated, and relatively well-known MFIs. Some 8% of all MFIs are close to 

being profitable (Niels Hermes & Lensink, 2011). Both these groups of MFIs are considered to be 

commercial organizations, focusing on profitability or sustainability (Niels Hermes & Lensink, 

2011). A third group of organizations (20% of all MFIs) consist of mostly NGOs, which are not 

yet financially sustainable, but may become sustainable in the near future (Niels Hermes & 

Lensink, 2011). The remaining group of MFIs (70% of all organizations) consist of smaller, start-

up organizations, which are still far from being financially sustainable and are, therefore, heavily 

dependent on subsidies (Niels Hermes & Lensink, 2011).  

According to Ledgerwood, J. in 1999 institutional sustainability or financial performance 

of microfinance institution consists of profitability, portfolio quality, productivity, and financial 

viability (Ledgerwood, 1999). Whereas, financial viability consists of operational selfsufficiency 

(OSS) & financial self-sufficiency (FSS), which indicates an indicator of MFI’s ability to cover its 

costs with earned revenues (Ledgerwood, 1999). Moreover, Armendariz de Aghion, B. and J. 

Morduch in 2005 used operational self-sufficiency (OSS) & financial selfsufficiency (FSS) on 

their study for MFI’s performances evaluations (Armendariz de Aghion & Morduch, 2005).  

  

Empirical Review of Financial Sustainability  

The measurement of sustainability has become a crucial topic. MFIs sustainability was discussed 

in very few empirical studies in different countries. In these studies, sustainability of microfinance 

institutions was measured using different ratios. However, no definite measure is available for 

determining sustainability level of microfinance institutions (Mia et al., 2015; Rai & Rai, 2012). 

Tehulu (2013) in his study used FSS to measure MFIs financial sustainability in East Africa. 

Another study by Kar (2013) has also used financial self-sufficiency ratio as an approximation for 

financial sustainability of MFIs. The financial self-sufficiency ratio has become a popular measure 

of MFI performance, and it has been adopted by the Micro Banking Bulletin (MBB) as its principal 

measure of financial sustainability (Manos & Yaron, 2009). Based on FSS data published in the 

MBB of spring 2008, it appears that out of 340 MFIs reviewed in 2006, 244 (72%) were financially 

self-sufficient.   

Kazemian et al. (2014) have also used financial self-sufficiency as an estimate for 

sustainability of Amanah Ikhtiar Malaysia. The study was focused on the relationship between 

market orientation and MFI sustainability. Financial sustainability for MFIs in Ethiopia was also 

determined using financial self-sufficiency ratio (Kinde, 2012). M. A. Rahman and Mazlan 

(2014a) investigated the drivers of MFIs financial sustainability in Bangladesh. Study 

approximated financial sustainability by using financial self-sufficiency ratios. Another study to 

measure the sustainability of MFIs by using FSS ratio have been done by Nwachukwu (2014).  

Ayayi and Sene (2010) used OSS to estimate the sustainability of 217 MFIs for the year 

ranging 1998-2006. Lenssen et al. (2014) and Kaur (2014) has also used OSS to measure the 

sustainability of MFIs in India post-Andhra Pradesh crisis.. Ngo et al. (2014) also investigated the 

relationship between the scale of operation and MFIs sustainability in Bangladesh. In their study 

OSS ratio was used to measure sustainability. Islam et al. (2014) also used OSS to measure the 

MFIs financial sustainability. They investigated the impact of interest rate cap effect and cost 



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structure on the financial sustainability of MFIs in Bangladesh. V. L. Bogan (2012), V. L. Bogan 

(2008) and V. Bogan et al. (2007) have emphasized that to be financially sustainable MFIs needed 

to be operationally self-sufficient.  

Mia et al. (2015) measured the sustainability of MFIs by using financial revenue over the 

asset. The result showed that MFIs failing to achieve financial sustainability were related to higher 

leverage. Daher and Le Saout (2015) and Chenuos et al. (2014) have measured sustainability of 

MFIs by using return on asset. Khandker and Khalily (1996) discuss sustainability of Bangladesh 

Rural Advancement Committee’s (BRAC) regarding financial viability, institutional viability and 

sustainability of targeted beneficiaries.   

Several indices were also found to determine the sustainability of Microfinance institution. 

Subsidy dependence index (SDI) analyzes the sustainability of four rural financial institutions 

(RFIs) (Yaron, 1992). These institutions include Badan Kredit Kecamatan Indonesia, Grameen 

Bank Bangladesh, Bank for Agriculture and Agricultural Cooperatives Thailand and Bank Rakyat 

Indonesia Unit Desa. SDI was designed to evaluate the progress of RFI for getting free from 

dependence on subsidies. It also evaluates the level of dependency on grants when RFIs are 

compared with a similar institution. It also investigates the degree of interest RFI should adopt to 

be independent of subsidies. Negative SDI indicates not only that RFIs have attained FSS but also 

profits exceeding the number of subsidies and also RFI have the capacity to reduce their lending 

interest rate. Zero SDI means RFIs have achieved FSS. Contrary, if SDI is 100 percent, the lending 

rate should be doubled to reach FSS.  

However, according to Nanayakkara (2012), the reliance on SDI is not acceptable as it 

indicates the dependence level of subsidies only and does not consider the outreach. Furthermore, 

when MFI tends to achieve subsidy independence by using SDI, it may deviate from its mission 

of poverty alleviation by charging a high-interest rate to poor customers.   

Another index incorporated by Christen (1995) is commonly known as financial 

selfsufficiency index. Three types of adjustments are made to revenues and costs when the FSS is 

computed: adjustments for inflation, adjustments for subsidies, and adjustments for loan loss 

provisions and write-offs. The adjustment for inflation counters the decrease in value of financial 

assets. Furthermore, the adjustment of subsidy accounts for three types of grants: concessionary 

borrowings, cash donations, and in-kind grants. The adjustment for loan loss provisions and write-

offs accounts for variation in the recognition of delinquencies and writing off of bad loans. Christen 

(1995) make the points that the SDI and the FSS are compatible, and that the FSS adjusts the 

financial statements in line with market rates as if the MFIs were not subsidized.  

A financial sustainability index was developed by Rai and Rai (2012) to evaluate the 

sustainability level of MFIs in India and Bangladesh in the year 2009-2010. Sustainability score 

of MFIs was determined using four financial indicators. These include PAR>30, OER, leverage 

and OSS. The base score for MFIs sustainability in the year 2010 was 63.25. The study also 

determines the factors which influence the sustainability of MFIs. Rai and Rai (2012) have 

measured sustainability by using an operational self-sufficiency ratio. Above studies depict that 

financial sustainability, a physical parameter, can be monitored and measured using several 

indicators, including return on asset, financial revenue to total asset, FSS and OSS ratios. However, 

CGAP, MIX market and Micro Banking Bulletin (MBB) have emphasized FSS and OSS as their 

principle instruments for calculating financial sustainability (CGAP, 2003; Manos & Yaron, 2009).  

Several studies also stress that financial sustainability is measured as financial self-sufficiency and 

operational self-sufficiency (V. Bogan et al., 2007; Chaves & GonzalezVega, 1996; R. Cull & 

Morduch, 2007; Islam et al., 2014; Lenssen et al., 2014; M. A. Rahman & Mazlan, 2014a; Rai & 



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Rai, 2012). Financial self-sufficiency implies MFIs ability to cover the cost of operations without 

dependency on subsidies, and operational self-sufficiency implies MFIs ability to cover the cost of 

its revenue (CGAP, 2003).  

Sustainability has been commonly used in financial aspects by researchers regarding 

financial sustainability only. However, Bhanot et al. (2015) mentioned that in reaching 

sustainability, financial sustainability is just one dimension. Mahajan and Ramola (1996) measures 

the sustainability of MFIs by using financial sustainability and outreach separately. He showed his 

concern that increase in focus on financial sustainability results in the shift in outreach. Millson 

(2013) also measures sustainability regarding both outreach and financial sustainability. Thus, 

sustainability of MFIs can be measured using financial sustainability and outreach (Annim, 2012; 

Quayes, 2012; Zeller & Meyer, 2002). Mutually, FSS and Outreach are necessary for MFI 

performance without displacement of one for the other (Kar, 2013; Kinde, 2012). In a study by 

Annim (2012), analysis of the data show that MFIs that have better depth of outreach were 

operationally self-sufficient. Their study investigated the impact of FSS and OSS on outreach. 

Another study was done to determine the trade-off among outreach and financial sustainability by 

using operational self-sufficiency as a measure of financial sustainability (zero & Rani, 2012). 

Results suggest that outreach and financial sustainability were interdependent.   

Zeller and Meyer (2002) introduced “the triangle of microfinance” which was consistent 

with the above studies. According to Zeller, successful microfinance institutions should be 

financially sustainable, have positive outreach to the poor and should be helpful in poverty 

alleviation. Yaron (1992) also considers financial sustainability and outreach as a benchmark for 

sustainable MFIs if subsidy dependence is zero. Under Welfarists approach, Kipesha and Zhang 

(2013) results do not show the tradeoff. Other researchers also found that sustainable MFIs achieve 

financial sustainability along with poverty outreach simultaneously (Adhikary & Papachristou, 

2014; De Crombrugghe et al., 2008). Murdoch (2000) and Paxton (2002) clearly discuss the 

winning proposition for sustainability of MFIs if both costs of operation and maximum outreach 

to the poor people were achieved without external support of donor funds or government subsidies. 

Similarly, Rai and Rai (2012) also found that breadth of outreach influence OSS of MFI.  

A study by Bhanot et al. (2015) supports the above argument who has also developed a 

sustainability index for MFIs in India. Their sustainability index does not include only financial 

indicators, but also include outreach measures. OSS, BO, and DO were used to determine the 

sustainability scores for MFIs in India. MFIs sustainability score ranges varies from 0.80 (the 

maximum) to 0.26 (the minimum).  However, the index does not include the important financial 

indicator of FSS which is critical as it determines MFIs to continue its operations without 

depending on subsidies (CGAP, 2003; Morduch, 2000). Thus, measurement of sustainability level 

has been a serious problem that is not discussed. Without understanding the sustainability level of 

microfinance institutions, it would not be significant to investigate the drivers which influence 

MFIs sustainability. In the next section, we will discuss the various factors that are deemed 

important for MFIs sustainability by previous researchers.  

Sustainability normally taken as recovery of the full cost of MFI or generating sufficient 

profit to continue the operations of MFIs without depending on external supports by donors and 

government subsidies (CGAP, 2004). It is commonly used as financial aspects by researchers 

regarding financial sustainability only. Financial sustainability was one of the key measurement 

variables for sustainability of microfinance institutions (Ayayi & Sene, 2010; Basharat et al., 2015; 

M. W. Rahman & Luo, 2012; Sekabira, 2013; Tehulu, 2013). Several studies have mentioned that 



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for an MFI to be sustainable, it should be financially self-sufficient (Gibbons & Meehan, 1999; 

Kar, 2013; Kinde, 2012; Morduch, 1999).  

However, Bhanot et al. (2015) mentioned that in reaching sustainability, financial 

sustainability is just one dimension. Under ‘Welfarist Approach’, for an institution to be 

sustainable, the core function of MFIs was to reach the maximum poor clients (Hulme & Mosley, 

1996; Kipesha & Zhang, 2013; Morduch, 2000; Woller et al., 1999). Mahajan and Ramola (1996) 

measures the sustainability of MFIs by using financial sustainability and outreach. They were 

concerned that increase in focus on financial sustainability may result in the shift in outreach. 

Millson (2013) also measures sustainability regarding both financial sustainability and outreach to 

the poor. Murdoch (2000) clearly discusses the winning proposition for sustainability of MFIs if 

both costs of operation and maximum outreach to the poor people achieved without external 

support by donor’s funds or government subsidies. Khandker and Khalily (1996) discuss the 

sustainability of Bangladesh Rural Advancement  

Committee’s regarding financial viability, institutional sustainability and sustainability of targeted 

beneficiaries. In their study, financial viability approximates program's ability to recover its cost 

of operation from its revenues. Institutional sustainability approximate MFIs ability to continue its 

activities on a sustained basis and beneficiaries’ sustainability implies the positive impact of 

microfinance services on the growth of recipients and their ability to repay their loan within given 

time frame (Khandker & Khalily, 1996).  

The triangle of microfinance introduced by Zeller and Meyer (2002) also supports the 

above studies. According to Zeller, successful microfinance institutions should be financially 

sustainable, have positive outreach to the poor and should be helpful in poverty alleviation. Yaron 

(1992) also considers financial sustainability and outreach as a benchmark for sustainable MFIs if 

subsidy dependence is zero. Thus, sustainability of MFIs can be measured using financial 

sustainability and outreach (Annim, 2012; Quayes, 2012; Zeller & Meyer, 2002). Ruff and 

Mahmood (2009) use six dimensions of outreach to approximate MFIs performance. They used 

OSS and FSS to determine cost and length of outreach. Under institutionalist view, Kipesha and 

Zhang (2013) found that outreach has a positive correlation with both profitability and 

sustainability measures. Simultaneously, using Welfarists approach, results do not show the 

tradeoff between outreach and sustainability.  

Outreach and financial sustainability have an active relationship with MFIs sustainability 

(Louis et al., 2013). Also, MFIs can achieve sustainability if they increase outreach to target poor 

and achieve financial sustainability simultaneously (De Crombrugghe et al., 2008). MFIs, to 

remain sustainable, should use appropriate processes and structures to facilitate its customers and 

continue its operations without any interruption (Rao, 2014). In the next section, we discuss 

financial sustainability and outreach to understand the sustainability of MFIs. Microfinance, the 

most successful and powerful weapon in the war of poverty alleviation (Yunus & Abed, 2004). 

The journey of microfinance program started as an alternative type of credit institution for rural 

populations who has no other option. Small credit loan has been given to very poor group of people 

and involve them in micro-business which generate income. Tho the uniqness of microfinance 

ideology is its dual objectives nature; (i) profit making and (ii) social (Hartarska & Nadolnyak, 

2007). Therefore an efficient microfinance institutions have to cover all administrative expenses, 

loan losses, financing capital and surplus for further expenses from operating income (profit 

making objective) and operational efficiency to reach the poorest (social objective) (Thapa, 2007). 

Consequently microfinance institutions attract its client through innovative approaches such as 



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progressive lending, group lending, collateral substitutes and regular repayment schedules (Thapa, 

2007).  

During 1990s the issue of financial viability focused for the first time by academic scholar 

and policy makers (Robinson, 2001; Tucker, 2001). Since that number of research has been 

conducted, policies and strategies have been changed; issues have been taken under consideration 

of implementation. Moreover till to date various research agreed on the extreme importance of 

financial viability of microfinance institutions for its long term operations in the market (CGAP, 

2003; Robert Cull, Demirgüç-Kunt, & Morduch, 2009; Begoña Gutiérrez-Nieto, Serrano-Cinca, & 

Mar Molinero, 2007; N. Hermes et al., 2011; MIX, 2005, 2008, 2009). Number of issues has been 

identified for the increasing interest on efficiency and financial viability, alike the 

commercialization or transformation of MFIs, competition among existing MFIs, economic 

liberalization, government regulating policies and most importantly technological revolution in 

recent era (Rhyne & Otero, 2006).  

More than US $ 1 billion per year has received by MFIs in donation from both govt. and 

private sector in last 20 years (CGAP, 2005). However about 5% of global MFIs found working 

efficiently without external subsidies conversely rest of them extremely depend on it to operate 

effectively (UNCDF, 2005). These subsidies also provided in various form (i) direct (i.e. cash, 

donations) (ii) indirect (i.e. asset, soft-skill, training, technology). Armendariz & Morduch argued 

that beyond mentioned form there few more forms (i.e. tax holidays, loan guarantees, soft equity, 

or public goods) of subsidies also have practiced but this information might not place open to the 

data collector (B. Armendariz & Morduch, 2005). However in a previous study Morduch identified 

this huge adjustment difference where he calculated the total direct and indirect subsidies of 

Grameen Bank for 1985-1996 was US$ 144 million while it was reported only US$ 1.5 million 

(Morduch, 1999b).  

Such comprehensive donor dependency of MFIs has raised several arguments on 

sustainability and efficiency of MFIs. Hollis & Sweetman addressed that financial sustainability 

of MFIs is very important matter that should be examined keep MFIs sustainable (Hollis & 

Sweetman, 1998). Financial sustainability which is one of the objective of MFI defined as the 

ability to cover all operational cost with its generated revenue and also able to finance future 

growth from that (Ayayi & Sene, 2010). Lack of these capabilities are some reasons why MFIs 

that are strongly dependent on external subsidies generally less sustainable and efficient (Rhyne, 

1998). Various study found number of active borrowers enhance the deposit scheme and internal 

cash flow, which brings financial sustainability in MFIs. Therefore, MFIs should practice offering 

trasparent and competitive interest rates to allow their borrowers to enhance financial sustainability 

continuously (Acclassato, 2008).  

Sevaral previous studies explained that there are a significant relation between financial 

self-sufficiency and operating efficiency. Although the prime tensions are subsidies undercut both 

efficiency and scale within the microfinance institution, and pervert the market by supporting more 

inefficient institutions (M. Hudon & Traca, 2011). In a different study found that smart subsidies 

enhance microfinance institution’s efficiency and help to develop better infrastructure (B. 

Armendariz & Morduch, 2005). However it is surprising that only limited studies have identified 

evidence of subsidies impact on the microfinance performance (M Hudon, 2006) and (R. J. Cull, 

Demirgüç-Kunt, & Morduch, 2006). Microfinance institutions are a special form of financial 

service provider, but it doesn’t mean that operational efficiency and sustainability are not important 

for them like traditional bank. However, assessment and measurement mechanism may vary from 

microfinance institutions compare to traditional financial institutions. Production oriented non-



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government MFIs have been revealed as the most efficienct from previous studies (Begoña 

Gutiérrez-Nieto et al., 2007).  

Acclassato in 2008 revealed that interest rate ceilings do not protect small businesses. In 

actual practice, interest rate ceilings damage microfinance institutions (Acclassato, 2008). The 

findings also mentioned that microfinance institutions need to price loans in a realistic way to be 

sustainable and to reach a large number of clients. The study has recommended the promotion of 

transparency on interest rates to stimulate competition among MFIs as a way of protecting 

borrowers. Moreover, the financial sustainability of MFIs is based on the capability to meet all 

costs on an adjusted basis and alludes to the use of the institution’s own available sources in 

operating without on-going subsidies from donors or losses (Guntz, 2011).  

Furthermore, a different examination by Agbodjan on the results of the prudential 

regulations showed that the non-observance of some "prudential ratios" by MFIs did not adversely 

affect their financial and organizational performance. Moreover, in view of the very strong 

correlation between the sustainability and the profitability of these institutions, the recommended 

strategy should consist of the removal of the framing of lending rates to make these neighbourhood 

credit institutions more profitable (Agbodjan, 2002). In addition, the cost efficiency of MFIs is 

affected by average loan size, proportion of net assets, financial sufficiency, financial leverage, 

business experience, and proportion of farm loans (Gregoire & Ramírez Tuya, 2006). In 2012, 

Kinde showed that the financial sustainability of Ethiopian MFIs has been affected by the breadth 

and depth of outreach, dependency ratio, and cost per borrower. He has also concluded that during 

the study periods, the microfinance capital structure and staff productivity have insignificant 

effects on the financial sustainability of MFIs in Ethiopia (Kinde, 2012). Thapa (2007) showed 

that MFIs is considered as financially self-contained if their operating incomes are able to sustain 

all loan losses, administrative costs, and financing costs after synthesizing inflation rates and 

subsidies from donors and treating all funding as if it had a commercial cost.  

The FSS of MFIs depends on the performance of the return on assets (ROA) and return on 

equity (ROE) (Tucker & Miles, 2004). The authors concluded that providing financial service to 

the poor is an expensive proposition, which can be a deterrent for numerous MFIs to reach self-

sufficiency, and may require them to acquire continued subsidies. The cost argument has an 

important flaw: client retention, which is a critical aspect of financial sustainability and a key 

measure of social influence, is significantly higher in rural markets (Epstein & Yuthas, 2013). The 

study suggested that by operating in rural markets, MFIs may be able to increase both social 

influence and financial performance. However, in a different study, the authors asserted that MFIs 

can significantly improve their financial sustainability and social influence by increasing the focus 

on trust (Epstein & Yuthas, 2011).  

Without maximizing the loan size and increasing the cost of monitoring, the difficulties to 

meet expenses on partial unsecured and small loan can be covered. Therefore to develop better 

financial situation MFIs should improve the policy to standardize interest rate threshold or 

maximize the number of borrower per loan office based on collective delivery method (De 

Crombrugghe et al., 2008). MFIs operate primarily in nations with a relatively minimum degree 

of overall economic independence and where government intervention in the economy can reduce 

their sustainability (Crabb, 2008). His observation has resolved the issue with regard to how 

remarkable is the economic environment in host countries where MFIs operate as a factor in their 

ability to reach their goal.  

Al Atoom and Abu Zerr conducted three phases of analysis: taking four financial factors 

of financial sustainability, introducing the countries’ macroeconomic regime factors, and 



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integrating both micro- and macro-factors together. Results showed that Jordanian MFIs have more 

financial sustainability than those of other Arab and Asian countries (Al Atoom & Abu Zerr, 2012). 

Moreover, these MFIs have less significant effect on the financial sustainability of the world's 

MFIs. Their study recommended that the government should improve the macroeconomic regime 

policies, financial policies, and monetary policies to help MFIs achieve sustainability. This 

recommendation finds support in the observation that the country-level context is an important 

determinant of performance of microfinance  institutions and a continues defects for the 

environment where it has pointed (Ahlin, Lin, & Maio, 2011).  

Profit margin, operational self-sufficiency (OSS), ROA, and gross loan portfolio-to-total 

asset ratio considerably affect the other components by establishing the financial sustainability 

dimension (Anduanbessa, 2009). Borrowers’ outreach is growing as evidenced by the opening of 

branches in almost all regions of Tanzania; nevertheless, landing activities are still brought to 

around city areas (Chijoriga, 2000). His study concluded that operational performance 

demonstrates less loan repayment rates. Conversely, capital structure reveals a high dependence 

on donor or government subsidy. Moreover financial sustainability increases through well 

mechanisms practice of external governance in microfinance institutions (B. S. Bassem, 2009). 

The study also proposed that other factors, such as regulation and the use of the individual lending 

methodology, can lead to sustainability.  

Interest rates, administrative efficiency, loan officer productivity, and staff salaries are 

significant determinants of FSS, but staff productivity measures and institutional scale are 

unrelated to FSS  (G. Woller & Schreiner, 2002). The study found a statistically significant and 

positive relationship between FSS and depth of outreach. However, earning profits is possible 

while serving the poor, but a trade-off emerges between profitability and serving the poorest 

(Robert Cull & Morduch, 2007). They concluded that raising fees to extremely high levels does 

not ensure higher profitability, and the benefits of cost-cutting diminish when serving better-off 

customers. Consultative Group to Assist the Poor came up with the guideline for microfinance 

institutions on the financial terms’ definitions, ratios and adjustments in 2003 and other rating 

agencies, multinational banks, donors, NGOs, private voluntary organizations etc. agreed on that 

guideline. The guidelines generally divided in four categories of financial ratios: (i) 

profitability/sustainability, (ii) liability/asset management, (iii) portfolio quality, and (iv) 

productivity/efficiency.  

  

The Social Performance and Women empowerment of Microfinance Institutions  

The depth of outreach may be defined as the “poverty level of clients served by MFI” (Rao, 2014; 

Rauf & Mahmood, 2009). The DO narrates the line of poverty, or the extent poor does not have 

access to regulated financial institutions. The proxy for DO is the average size of loan because 

other indicators of DO are usually expensive to collect. In recently published studies, DO was 

measured by average loan balance/size per borrower (Bhanot et al., 2015; Nanayakkara, 2012; 

Okumu, 2007).  According to Mersland and Strøm (2010), for an MFI, the risk associated with 

variation in the average size of the loan is unpredictable. Results describe that when loan size is 

small, MFI will be more cost effective. As average loan size increases, it increases the average 

operational cost thus increasing the average profit of an MFI. However,  Kumar Kar (2011) found 

that MFI should be careful in increasing the size of the loan as the risk associated with the loan 

also increases. Thus, the optimal size of the loan should be decided carefully. The increase in loan 

size also enhances the possibility of loan default also increases and affects MFI profitability. MFIs 

with smaller ALPB usually reach a large number of poor clients which shows a better depth of 



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outreach. Similarly, MFIs whose ALPB is large tend to reach less poor clients, thus resulting in a 

mission drift (Kar, 2013).   

Gashayie (2014) found that ALPB and NAB have no significant relationship with financial 

sustainability of MFIs (Kar & Swain, 2014). However, several studies found that ALPB has a 

negative correlation with MFI financial sustainability (Hermes et al., 2011; Louis & Baesens, 

2013; Zerai & Rani, 2012). However, Paxton (2002) using Subsidy Dependence Index (SDI) found 

that NAB and ALPB have a significant positive relation to MFIs financial sustainability. Quays 

(2012) also found that depth of outreach (DO) have a significant positive relationship with MFI 

financial sustainability. Several other studies also found that both ALPB and MFIs financial 

sustainability were positively related (Daher & Le Saout, 2015; Kar, 2013; Kinde, 2012; 

Nwachukwu, 2014).  The breadth of outreach refers to “the scale of operations of an MFI” (Rao, 

2014). Several studies have used number of active borrowers as a measure of the breadth of 

outreach (Kinde, 2012; Rai & Rai, 2012; Rauf & Mahmood, 2009). Results of Louis and Baesens 

(2013) show that OSS, FSS, and BO are positively related, whereas the DO has a weaker impact 

on MFI profitability. Similarly, Rai and Rai (2012) also found that breadth influence OSS of MFI.  

Some inconsistent results from different studies were found in the measurement for the 

breadth of outreach. Limited studies measure BO is using a number of women borrowers 

(D’espallier et al., 2011; Janda & Turbat, 2013). According to D’espallier et al. (2011) and  Janda 

and Turbat (2013) when MFI focus on female borrowers their performance regarding repayment 

increases. Furthermore, those MFIs in which female borrowers are more than male were less 

exposed to loan write-offs and their loan default ratio is low. However, Ayayi and Sene (2010) 

evaluated that female borrowers have no significant effect on the sustainability of MFIs.  The 

literature shows that sustainability of MFI is based on four measurement variables, including FSS, 

OSS, depth of outreach and breadth of outreach. Researchers are facing problems in determining 

the consistent measurement for sustainability. In the next section, we discuss the issues in the 

measurement of sustainability of MFIs. Micofinance is the alternative approach of collateral free 

loan service provider to the poorest populations in rural area. Traditional bank has ignored these 

populations because the lack of collateral and the weak legitimate practice will be unable to secure 

loan repayment if the client reneges on loan. The borrowing options therefore was shut down for 

the poor from traditional credit service provider and the circumstances lead to the contineus 

poverty and economic inequality. Collateral free micro-credit loan service therefore received 

enthusiastic acceptance (Beck, Demirgüç-Kunt, & Levine, 2007). Moreover the innovative 

approach of micro-lending to the social bottom line (reach out to the poor) and client’s involvement 

in profit genareting micro-enterprise ensure comparetively very high loan repayment (B. 

Armendariz & Morduch, 2005).  

Nevertheless the high repayment of loans yet unable to make sure the profitability for 

microfinance institutions. Therefore microfinance institutions still extensively depend on various 

local and international donors. As a result, the great debate on microfinance profitablity and 

sustainability yet to be solve (Morduch, 1999b). In a different perspective there is a call for more 

commercialization of microfinance program to access the available large asset and finance their 

further operational expenses, thus greater number of poor populations will be served (Ghosh & 

Van Tassel, 2008; Morduch, 2000). Once microfinance institutions able to reach their profitability 

from their own operations they can start borrowing from the commercial sector and reduce donor 

dependency. Pursuing the profitability will increase the poorest populations in a loan which is the 

prime concern of microfinance program.  



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However the controversy arises here too on whom to serve (target group), and the level of 

poor people to serve (poverty level). Navajas et al. argued that microfinance institutions lending 

credit to the households those are nearly to the poverty line, however most of them are the richest 

among the poor (Navajas, Schreiner, Meyer, Gonzalez-Vega, & Rodriguez-Meza, 2000). There 

are some families whose income about to poerty line, on the other hand some living under lower 

subsistence frontier. Few of them employed, few might involved in setting up micro-venture and 

others are unemployed. The very poor can realize the benefit of microfinance from its consumption 

smoothness (Morduch, 1998; Zeller & Johannsen, 2006). Sevaral studies also confirmed that 

competition in microfinance indudtry also effets outreach of microfinance institutions in different 

region (Hartarska & Nadolnyak, 2007; Olivares-Polanco, 2005).  

Professor Yunus invested his idea of micro-lending to the poor who are unserve by 

commercial bank because of their poverty in 1970s in Bangladesh. The poor commonly considered 

as proper client for microfinance because they can involve in profit making venture and repay their 

interest for loan have taken (Morduch, 2000). Poverty and vulnerability create entrepreneurial 

spirit in the mind of poor people and influence them to change their destiny (Junyon Im & Sun, 

2014). But they need law enforcement to protect private properties; thus poor borrower will have 

incentives to genaret wealth and enrich prosperity (Ding et al., 2014; Peng, Sun, Pinkham, & Chen, 

2009). From the sustainability perspective, profitablity of microfinance institutions could be very 

close issue to the outreach of social bottom line as it will keep sustain the institutions to serve more 

client (Muhammad Yunus, 2007). Conversly profit seeking for microfinance institutions also has 

negative impact on outreach as it increase operational cost to serve poorer populations (R. Cull, 

Demirgüç-kunt, & Morduch, 2007; R. Mersland & Strøm, 2010). However a recent study propose 

a comprehensive model that include financial sustainability and outreach as endogenous variables 

and the results disclose that financial sustainability does not badly affect to the depth or breath of 

outreach (Nurmakhanova et al., 2015).  

Another examination has taken place by Julia Meyer (2015) where she analyze the 

interaction between social and financial returns in microfinance. A multivariate regression models 

has ran using 1,508 observations on microfinance institutions for the period of 2004 to 2010. The 

result found strong evidence that microfinance institutions can achieve higher portfolio yields from 

more social outreach (Meyer, 2015b). Shakil Quayes (2015) has conducted a panel investigation 

on possible trade-off between outreach and performance using 764 microfinance institutions from 

87 countries. The empirical results of this study revealed that financial performance of MFIs can 

be boosted by the reach out to the poor (S. Quayes, 2015). However both recent studies confirm 

microfinanc institutions can achieve better financial performance from their social outreach, 

however some market oriented strategies need to be applied.  

A study on Savings and Credit Cooperative Societies (SACCOs) of Tanzania revealed that 

both product development and market development have significant contribution on outreach 

performance (Jeje, 2014). However sometime this relationship of outreach and financial 

perfomance can be represent negative from the country contex. Indeed a study has been taken 

place with an assumption that financial performance and outreach in Ethionpian microfinance 

institions is not related. The hypothesis has tested with three outreach and two financial 

sustainabilty indicators based on 5 microfinance institutions. The study concluded with negative 

trade-off between financial performance and outreach in Ethionpian microfinance institions 

(Gashayie, 2014).  

Schreiner proposed an outreach framework in 2002 where author mentioned there are six 

aspects of social benefits of microfinance program for its poor clients, such as (i) cost of outreach 



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to clients, (ii) worth of outreach to clients, (iii) depth of outreach, (iv) breath of outreach, (v) length 

of outreach and (vi) scope of outreach (Schreiner, 2002). The costs of outreach to clients define 

the transaction costs and price costs charged to the clients of microfinance program. However the 

worth of outreach to clients entails the willingness of microfinance clients to pay. On the other 

hand, the depth of outreach represents the added value of active microfinance clients to the society. 

Welfare theory claim that depth is the weight of a clients in the social welfare function, therefore 

weight depends on the preference of the society (Schreiner, 2002).  

The most popular proxy for depth of outreach is average loan size. Smaller average loan 

size proclaims that microfinance reaching out to the poorer clients, showing greater outreach depth. 

Alternatively, indirect proxies of depth of outreach could be: (i) location, with rural areas preferred 

to urban areas; (ii) sex, with outreach to women preferred; (iii) ethnicity, minorities are preferred; 

(iv) education, less education is preferred; (v) access to public services, whereby a lack of access 

is preferred; and (vi) housing; with small and vulnerable houses preferred. Conversely breath of 

outreach measured by the number of clients has been served by the microfinance institutions or the 

active number of borrowers. The future time frame or the duration of the supply of microfinance 

services refers to the length of outreach. And lastly, the number of microcredit products or services 

provided to the clients will represent the scope of outreach of microfinance institutions.  

A difference has been made between the achievement of social promise and the poverty 

alleviation of microfinance institutions by the standards report of the Social Performance Task 

Force (SPTF, 2009). On the other hand Zeller et al. argued that social performance measurement 

and social impact measurement is not the same. Social performance measurement should 

concentrate to the reach out measurement of microfinance program, whereas social impact 

measurement is associated with the outreach to poverty, the development in welfare, and the 

enhancement of quality of life of poorer clients (Zeller, Lapenu, & Greeley, 2003).  

  

CONCLUSIONS AND RECOMMENDATIONS  

From the review of empirical evidence on the effect of microfinance institutional financial 

sustainability on social development and women empowerment in Malaysia, the current study 

observed that the current literature in this field is scarce. Most studies were based only on the 

descriptive presentation of microcredit programs. There are very few studies assessed the 

performance of the AIM with respect to the Social contribution as well women empowerment in 

Malaysia and compared with international context. The summary of literature review revealed that 

it is the unique goal of MFIs for poverty reduction mission through ensuring of financial 

sustainability while contribution impact in the society. It has also revealed that it is the way the 

social mission of poverty alleviation through serving the poorest has been overshadowed by profit 

motive.  However, profit orientation of the microfinance industry also emphasis on profit earning. 

Thus, some microfinance institutions rediscover their operating efficiency through earning profit 

while some chose to serve better-off clients with bigger loan to manage their various costs.  The 

studies also concluded that trade-off between serving the prime mission of poverty relief through 

reach out to the social mission and women empowerment and seeking financial self-solvency 

through serving better-off clients.   

However, this study found that social mission and women empowerment achieved through 

financial performance is the going concern issues as of MFIs performing better financial 

performance. This finding might put institutional investors in dilemma. However, if profit 

orientation of MFIs overshadows their social objective, then dual mission might occur, but it’s yet 

to confirm through empirical studies.  Furthermore, some studies claimed that commercialization 



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of microfinance institutions forces the interest rate increment to earn adequate profit to adhere 

shareholder demand. Logically lower interest rate helps poor to manage their repayment. However, 

managing small loan in rural area is also a matter of high operating cost. Some studies therefore 

indicated that institutions often serve better-off poor clients with the bigger loan size to minimize 

their operational cost in some region. But if microfinance institutions choose to serve wealthier 

clients that would be considered as social mission and women empowerment.   

Therefore, microfinance institutions in around countries confined in both goals, but yet to 

unanswered through empirical studies. Especially there are very limited studies found on about 

social mission and women empowerment achieved through financial performance in Malaysia. 

Thus, this study aims to identify the effects of the microfinance institution’s (MFIs) financial 

sustainability on social development and women empowerment in Malaysia and comparisons 

between the microfinance institutions (MFIs) of the Bangladesh.  

 

ACKNOWLEDGEMENT 

The authors gratefully acknowledged the financial support for this research from the Fundamental 

Research Grant Scheme (FRGS) of Project No. FRGS/1/2018/SS01/UNISEL/02/2. 

  

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