Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 43

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 43
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 some of the Southeast Asia markets, governments
continue to play a significant role in regulating industry development by imposing industrial policies. Moreover, some local governments
also exercise significant control over the economic growth and public order in their respective jurisdictions through allocating resources,
controlling payment of foreign currency-denominated obligations, setting monetary policies, and providing preferential treatment to particular
industries or companies.

While the Southeast Asia economy,
as a whole, has experienced significant growth over the past decades, growth has been uneven, both geographically and among various sectors
of the economy. Any adverse changes in economic conditions in Southeast Asia or in other markets in neighboring regions (such as China
and Japan), or in the policies of the governments or of the laws and regulations in each respective market could have a material adverse
effect on the overall economic growth of Southeast Asia. Such developments could adversely affect our business and operating results,
lead to reduction in demand for our game publishing and adversely affect our competitive position. Many of the governments in Southeast
Asia have implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures may
benefit the overall economy, but may have a negative effect on us. For example, our financial condition and results of operations may
be adversely affected by government control over foreign capital investments or changes in tax regulations. Some Southeast Asia markets
have historically experienced low growth in their GDP, significant inflation and/or shortages of foreign exchange. We are exposed to the
risk of rental and other cost increases due to potential inflation in the markets in which we operate. In the past, some of the governments
in Southeast Asia have implemented certain measures, including interest rate adjustments, currency trading band adjustments and exchange
rate controls, to control the pace of economic growth. These measures may cause decreased economic activity in Southeast Asia, which may
adversely affect our business, financial condition, results of operations and prospects.

In addition, some Southeast
Asia markets have experienced, and may in the future experience, political instability, including strikes, demonstrations, protests, marches,
coups d’état, guerilla activity or other types of civil disorder. These instabilities and any adverse changes in the political
environment could increase our costs, increase its exposure to legal and business risks, disrupt its office operations or affect its ability
to expand our user base.

Uncertainties with respect to the legal system in certain markets in Southeast Asia could adversely affect GCL Companies.

The interpretation and enforcement
of laws and regulations involve uncertainties and inconsistencies. Since