Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 8

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 3
Chunk 8
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may adversely affect our business operations and financial condition.

Over
80.0% of our workforce is made up of foreign labor and inability to recruit and/or retain foreign labor could materially affect our operations
and financial performance.

Our
business is highly dependent on foreign workers as the local construction labor force is of limited supply and more costly. As of April
30, 2024 and 2025, over 80.0% of our workforce was made up of foreign employees (including site workers and other employees) for both
years. Any shortage in the supply of foreign workers, increase in foreign worker levy, or FWL, for foreign workers, or restriction on
the number of foreign workers that we can employ will adversely affect our operations and financial performance. The supply of foreign
labor in Singapore is subject to the policies and regulations imposed by the Ministry of Manpower, or MOM. For example, the MOM imposes
a quota on the number of foreign workers that the main contractor and its subcontractors can employ in respect of each construction project.
The tightening of such quota could affect our operations and accordingly our business and financial performance. Any changes in the policies
of the foreign workers’ countries of origin may also affect the supply of foreign labor and cause disruptions to our operations
which in turn may result in a delay in the completion of our projects. The MOM also imposes FWL for foreign workers (subject to changes
as and when announced by the Singapore government) whereby the FWL for basic skilled workers under the construction sector is set at
S$300-950 per head (varies by source country) as of the date of this Annual Report, and sets minimum standard for dormitories for foreign
workers. Any increase in FWL or the cost of dormitories for foreign workers will increase our operating expenses and will affect our
financial performance.

   5  

Our
business and operations may be materially and adversely affected in the event of a re-occurrence or a prolonged global pandemic outbreak
of COVID-19.

The
global pandemic outbreak of COVID-19 announced by the World Health Organization in March 2020 has had a widespread and detrimental effect
on the global economy as a result of actions by public health and governmental authorities, businesses, other organizations and individuals
in the affected countries to address the pandemic, including travel bans and restrictions, quarantines, shelter in place, stay at home
or total lock-down orders and business limitations and shutdowns. The outbreak of COVID-19 has had a material adverse