Economic Transformation Program for Asnaf

The Accounting Research Institute (ARI) in collaboration with the Sultan Mizan Foundation or the Yayasan DiRaja Sultan Mizan (YDSM) and Mydin Holding Berhad initiated an economic transformation program for the Asnaf and single mothers in Terengganu in 2014. Pusat Jahitan Baju Kurung specializes in producing the national dress for Malaysia.  The Sultan Mizan Foundation with the sponsorship of large government linked companies (GLCs) equipped the centres with sewing machines and other tailoring equipment.  As a party to the program, Mydin Holding Berhad supplies raw materials in the form of textiles and other tailoring materials and buy-back the finished products at bulk prices.  Two centres have been set up respectively in Kuala Terengganu and Paka. Each centre accommodates around 20-25 participants.  

The participants, who work in groups  produce at least 500 pairs of baju kurung weekly.  One of the main challenges often faced by small entrepreneurs is to find sustainable customers.  The ready-market concept offered by Mydin Holding Berhad allows the participants to produce quality products.  ARI provides financial management and other governance-related training to the participants. The program targets a period of two years for the participants, after which they are encouraged to manage their own little business. Congratulations all ARIANs.

Economic Transformation Program in Terengganu

In 2012, as part of its research in Islamic Financial Criminology, the Accounting Research Institute (ARI HICoE) initiated three Islamic-based economic transformation programs: Islamic microfinance, Islamic-based social enterprise and corporate waqaf.  When reviewing existing Islamic microfinance model, ARI researchers identified one very important gap - the need to link micro entrepreneurs to a complete supply chain, including both supplier(s) of reasonably-priced raw materials for the business and buyers of the business's finished products.  A pilot research project was carried out in Tanjung Karang with a group of microfinance recipients from Amanah Ikthiar Malaysia (AIM) - a microcredit organisation.  The entrepreneurs were involved in a tailoring business.  Since their clients were mainly among locals from Tanjung Karang, the market place for the "baju kurung" business was not only limited, more unfortunately, it was also seasonal in nature.  ARI researchers invited Mydin Holding Berhad to act both as a supplier of fabrics for baju kurung and as a buyer of ready-made baju kurung.  ARI developed a training module where entrepreneurs were exposed to new competencies of financial management, business planning and business governance.  With the much improved version of business framework, the entreprenuers were able to increase their sales, profits, capital and savings.   The Tanjung Karang micro business was later replicated to two other locations in Terengganu through a tripartite collaboration of ARI (UiTM), Yayasan DiRaja Sultan Mizan (YDSM) and Mydin Holding Berhad.  YDSM identified two locations - Paka and Kuala Terengganu.

 Using the same framework, Mydin Holding Berhad supplies fabrics to the tailoring business entrepreneurs. and later on, buy-back the completed baju kurung for sale in Mydin Hypermarkets.  To mark the successes of both the Paka and Kuala Terengganu micro-business groups, ARI organised a three-party Memorandum of Agreement between Universiti Teknologi MARA, YDSM and Mydin Holding Berhad.  The Islamic microfinance programs in Tanjung Karang, Paka and Kuala Terengganu had significantly transformed the economic status of the entrepreneurs.  In fact UiTM is planning to replicate the program to other states through the respective state campuses.

Social Enterprise Activity

1. Social enterprises are businesses that trade to tackle social problems, improve communities, people's life chances, or the environment. They make their money from selling goods and services in the open market, but they reinvest their profits back into the business or the local community. One of the six research clusters undertaken by the Accounting Research Institute (ARI) under its HICoE initiative involves Islamic-based Social Enterprise Among the Youth.  The cluster is headed by ARI research fellow, Associate Professor Dr Roshayani Arshad.  Recently Dr Roshayani was involved with the training of "disability" youth for her "Berbudi Kitchen" project.  The aim of the project is to enhance the groups' economic status by selling their products - cookies, cakes etc.  Researchers train the youth about basic business skills, financial management and marketing.  Selected agencies such as "Agensi Inovasi Malaysia" and other Non-Government Organizations or NGO come forward to facilitate with business financing.  Data on progress of the project is collected and documented by ARI researchers.  Well done Dr Yani and her team
   

First Delivery of YDSM Tailoring Transformation Project

A collaborative project between participants of Yayasan DiRaja Sultan Mizan (YDSM) Terengganu, Accounting Research Institute (ARI) and Mydin Holding Berhad was commenced in June 2015.  The Tailoring Project is one of our economic transformation program for the state of Terengganu. For a start, two locations were selected - Kuala Terengganu and Paka.  Our business model involves women entrepreneurs who have registered with YDSM.  The tailoring business focuses on sewing "Baju Kurung", a traditional dress for Malaysia.  YDSM sets up a workshop space, equipped with sewing machines, cutting machines and other essentials.  Mydin supplies raw materials in the form of fabrics.  ARI co-ordinates the process, sets target, monitors progress and provides trainings for entrepreneurs.  For this initial project, we have targeted 1000 pieces of baju kurung to be completed within two months.  Once  the target is met, the completed baju kurung will be sold to Mydin Holding.  Alhamdulillah, the first delivery of the completed baju kurung has been successfully made. As a research institute, ARI takes pride of this success.  We collect and collate all data related to business income generated by these entrepreneurs, time taken by them to complete each baju kurung, division of work (e.g. cutting, hemming, zipping) and financial management (personal money VS business money).  With the completion of this first batch of 1000 pairs of baju kurung, we know that the entrepreneurs themselves are undergoing a positive economic transformation.  Prior to this project, the entrepreneurs' clients were limited to local customers.  Now they can focus on making quality baju kurung ....Well done ladies, congratulations.