Abstract:

Socio-economic welfare is an essential element for people in nationwide. There are plenty number of poor in urban areas of Malaysia by the government records. They oblige of financial/non-financial services by microfinance institutions such microcredit, micro insurance, savings, training and social intermediation service in participating aggressively on business and enhance their living. Despite the government of Malaysia has been assisting urban poor, the issue of urban poverty still exists in nation. The main objective of this study is to examine the ideal microfinance services which enhance the socio-economic welfare of urban households’ poverty in Malaysia. This study used questionnaire method to collect 400 respondents across three different urban geographic areas in Malaysia. This study confirmed that most of the microfinance services provided by the microfinance institution in Malaysia had assisted the urban households in earning more income and enhance their socio-economic welfare. This study recommended that microfinance institution should design and promote more tailored relevant products and services to fulfil the requirement of the households. In addition, government should have a collaboration with microfinance institutions in assisting the household to improve their standard of living.