Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 3

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 3
Chunk 3
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contractually defined goals. The achievement of these contractually defined goals is often impacted by factors outside of our control,
such as the actions of our client or third parties. Because performance-based fees are contingent, revenues on such engagements, which
are recognized when all revenue recognition criteria are met, are not certain and the timing of receipt is difficult to predict and may
not occur evenly throughout the year. Should performance-based fee arrangements represent a greater percentage of our business in the
future, we may experience increased volatility in our working capital requirements and greater variations in our quarter-to-quarter results,
which could affect the price of our ordinary shares. In addition, an increase in the proportion of performance-based fee arrangements
may offset the positive effect on our operating results from increases in our utilization rate or average billing rate per hour.

Developments in the social, political, regulatory
and economic environment in the countries where we operate may have a material and 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 countries in which we operate.
Such political and economic uncertainties include, but are not limited to, the risks of war, terrorism, nationalism, nullification of
contract, changes in interest rates, imposition of capital controls and methods of taxation. For example, we have considerable operations
in Malaysia, and negative developments in Malaysia’s socio-political environment may adversely affect our business, financial condition,
results of operations and prospects. Although the overall economic environment in Malaysia and other countries where we operate appear
to be positive, there can be no assurance that this will continue to prevail in the future.

We have only a limited ability to protect our intellectual property
rights, which are important to our success.

Our success depends, in part, upon our ability
to protect our proprietary methodologies and other intellectual property. Existing laws of some countries in which we provide services
may offer only limited protection of our intellectual property rights. We rely upon a combination of trade secrets, confidentiality policies,
nondisclosure and other contractual arrangements, and patent, copyright and trademark laws to protect our intellectual property rights.
The steps we take in this regard may not be adequate to prevent or deter infringement or other misappropriation of our intellectual property,
and we may not be able to detect unauthorized use or take appropriate and timely steps to enforce our intellectual property rights.

We are increasingly
dependent on information technology, and our systems and infrastructure face certain risks, including cybersecurity and data leakage risks.

Significant