1. Stimulating Poor Rural
Economies Within Malaysia
To Combat Malnutrition
Saaket Varma
Maxwell Koobatian
Natalia Gruzdeva
Sai Hari Gandham
Kavitha Kuppusamy
Team PPM: 2015 Claremont Business Impact Case Competition
September 30, 2015

2. - High economic inequality and a strong divide between rich and poor in
spite of rapid economic growth
- Lack of access to clean water, food and land in several indigenous regions
- Communicable diseases passed along due to poor sanitation
- Lack of education
Causes of Stunting and Malnutrition
Consequences of Stunting Malnutrition
~11% of health burden is related to malnutrition leading to increased
healthcare expenditure at both the family and national level
Cost of malnutrition to a country is ~2% to 3% of GDP
Defining The Problem
Key strategies to further reduce stunting in Southeast Asia: Lessons from the ASEAN countries workshop, 2013

3. Microloan
Improved Adult
Eating Habits
Small Scale
Industry: Agriculture,
RUTF, Irrigation
Education
Distribution
Freedom From Hunger
Value Chain Proposition
Social Safety
Network

4. - How do you stimulate economies which are poor and rural?
"I just looked at conventional banks and how they do it.
And I do the opposite. And it works!
They go to the rich people, I go to the poor.
They go to men, I go to women.
They go to city center to do business, I go to the villages.
They have big lawyers in their banks, we have no
lawyers.
We are probably the only lawyer free bank in the world"
- Muhammad Yunus
“There is a cure for poverty….It is an elementary one. It does
work though and works everywhere and is colloquially called the
empowerment of women”
- Christopher Hitchens
Propose a Solution

5. Micro-Financing

6. - 98% Payback (* 20% were 1 year overdue)
- More than half of its borrowers in Bangladesh (~50 Million)
have risen out of acute poverty
- 97% of Grameen Bank members are women
- No legal enforcement OR written contract between
Grameen Bank and its borrowers. Built on trust.
- Made a profit every year since 1983 except 1983, 1991
and 1992
- Borrowers own 94% of the bank, 6% is owned by the
government
http://www.grameen-info.org/faq/ & https://en.wikipedia.org/wiki/Grameen_Bank
- In 2010 = Revenue $176.67 Million, Operating Income =
$120.95 Million, Net Income = $10.76 Million
Grameen Bank Facts

7. Real Life Example

8. Credit with Education (1998)
• Over the past 20 years of experience in 17
countries across Africa, Asia and Latin America
• Local partner organizations
• Education on a variety of topics, including children
and women's health and nutrition, preventing and
managing common diseases and business and
management practices
Advancing Integrated Microfinance for Youth (2009)
• $4.4 million partnership with The MasterCard
Foundation
• Three-year youth-focused microfinance and
financial education program for 37,000 youth in
Ecuador and Mali
Microfinance and Health Protection (2006)
• Builds on Credit with Education
• Offer financial products to improve access to health
goods and services
• More than 1.9 million women in 10 countries got
access and financing to meet their health needs.
Education
Health accessMicrofinance
Female Participation In Decision Making
Freedom from Hunger
Positive externality

9. RUTF – One Fell Swoop
RUTF formula – Malaysian version of Plympy’Nut®
- Essential macronutrients with vitamins and minerals
- Treat acute malnutrition – immediate recovery – prevent stunting
- Support local and sustainable farmed inputs - create jobs and
generate income
- Economic relief (product sales) and alleviate malnutrition
- Uplift economy and improve health
Risks: Dislike taste
Solution: Include local flavors to increase likability

10. Micro-
financing/Endowments/WB
SSN
for Distribution
Solutions For Food Distribution
Freedom From Hunger
Social Safety Network (SSN) groups in
Malaysia
- Sime Darby Corporate Group
- Malaysian bicycle campaign for government
reform (JERIT) “Cycling for Change”
campaign 2008
Funding agencies
- World Bank supports SSN in Malaysia
- Ongoing Carnegie endowments

11. SWOT Analysis
Strengths
- Increased maternal as well as paternal education
- Productivity improvement
- Better hygiene and sanitation
Weaknesses
- Misuse of loans
- Flavor and taste may not fit everybody
- Lag time; need time for education and
implementing of technologies
Opportunities
-Demographic transition: from high fertility-high
mortality to low fertility-low mortality
- Development of trading activities
- Dietary diversity
- Modernization of food systems
- Collaboration between private and public sectors
- Setting up healthcare standards
Threats
- Weather & climate disasters
- Government interference
- Abuse of natural resources
- Economical fluctuations
- Political resistance

12. - Misuse of loan
- Food availability
- Weather & climate
disasters
- Inability to pay
- Food accessibility
- Food affordability
- Lag time
- Political resistance
- Abuse of natural
resources
- Hygiene
- Food quality
- Food flavor and taste
- Government interference
- Economical fluctuations
High
Low
Medium
MediumLow High
Likelihood
Impact
Risk Assessment Map

13. Risk Mitigation Strategy
Food Accessibility and Affordability
- Improve supply chain
- Voucher system (social safety net programs)
Financial Security
- Give loans only to educated
- Work with reputable partners
- Create effective community networking
Quality and Standards
- Setting up healthcare and food standards

14. Thank You
Questions?

15. Appendix (1/2)
1) Key strategies to further reduce stunting in Southeast Asia: Lessons from the ASEAN countries workshop
http://www.wfp.org/sites/default/files/Stunting%20ASEAN%20-%20FNB%202013.pdf
2)http://www.grameen-info.org/faq/
3) https://en.wikipedia.org/wiki/Grameen_Bank
4)
http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20013180~menuPK:3327604~pagePK:343
70~piPK:34424~theSitePK:4607,00.html
5) http://carnegieendowment.org/files/sustaining_social_safety1.pdf
6) http://nvdatabase.swarthmore.edu/content/malaysian-bicycle-campaign-government-reform-jerit-cycling-
change-campaign-2008

16. Appendix (2/2)
7)
http://www.yayasansimedarby.com/1002110841»Sponsoring_a_Student_of_Montfort_Youth_Centre,_Melaka.asp
x
8) https://en.wikipedia.org/wiki/Grameen_Bank
9) Muhammad Yunus - A History of Microfinance
https://www.youtube.com/watch?v=6UCuWxWiMaQ
10) Christopher Hitchens – Empowerment of Women
https://www.youtube.com/watch?v=7jO2Uk0zU4c
11) http://www.ennonline.net/fex/102/4-3-2
12) Key strategies to further reduce stunting in Southeast Asia: Lessons from the ASEAN countries workshop
Bloem et al, Food and Nutrition Bulletin, vol. 34, no. 2 (supplement). 2013.
13) The Effect of Women’s Intrahousehold Bargaining Power on Child Health Outcomes in Bangladesh
Ellie Schmidt. ECONOMICS > UER > Vol. 9 (2012) > Iss. 1http://digitalcommons.iwu.edu/uer/vol9/iss1/4/