Company: ARBB
Filing Date: 2025-10-31
Form Type: 20-F
Source: 0001213900-25-104705
Chunk: 26

Company: ARB IOT Group Ltd
Filing Date: 2025-10-31
Form: 20-F
Item: Item 3
Chunk 26
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disputes and protectionist measures could also have an adverse effect on consumer confidence and spending. If we deem it necessary to
alter all or a portion of our activities or operations in response to such policies, agreements or tariffs, our capital and operating
costs may increase. As a result, changes in international trade policy, changes in trade agreements and tariffs could adversely affect
our business, results of operations and financial condition.

Risks Related to Operations in Malaysia

Our operations are subject to various laws
and regulations in Malaysia.

Our business is regulated by various laws and
regulations in Malaysia such as regulations on business licenses, intellectual property rights, employment, personal data and privacy,
dividends, unmanned aircraft, distribution trade services and cybersecurity. Certain registrations, certificates and/or licenses for the
conduct of our business are required under the above laws.

Based on our experience, some of the laws and
regulations of the place where we operate our business are subject to amendments, uncertainty in interpretation and administrative actions
from time to time. Therefore, we cannot assure you that, for the implementation of our business plans and the introduction of any new
services or products, we will be able to obtain all the necessary registrations, certificates and/or licenses. Any failure to comply with
the above laws and regulations may give rise to fines, administrative penalties and/or prosecution against us, which may adversely affect
our reputation, financial condition or results of operation.

The economy of Malaysia in general might
not grow as quickly as expected, which could adversely affect our revenues and business prospects.

Our business and prospects depend on the continuing
development of the economy in Malaysia. We cannot assure you that the Malaysian economy will continue to grow at the same pace as in the
past. Economic growth is determined by countless factors, and it is extremely difficult to predict with any level of absolute certainty.
In the event that the Malaysian economy suffers, demand for the products we currently offer may diminish, which would in turn result in
decreased likelihood of profitability. This could in turn result in a substantial need for restructuring of our business objectives and
could result in a partial or entire loss of an investment in our Company.

Developments in the social, political, regulatory
and economic environment in Malaysia may have a material adverse impact on us.

Our business, prospects, financial condition and
results of operations may be adversely affected by social, political, regulatory and economic developments in Malaysia. Such political
and economic uncertainties include, but are not limited to, the risks of