Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 157

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 19
Chunk 157
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 accordance with the contractual terms.

Allowance for ECL on loan receivables
has been measured at an amount equal to lifetime ECL. The ECL on loan receivables are estimated using a provision matrix by reference
to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for factors that are
specific to the debtors, general economic conditions of the industry in which the debtors operate.

The Company has recognized2.71% ECL
against past due loan receivables and0.5% ECL against not past due receivables. For specific and individual loan receivables, the Company
has access them individually to decide whether the loan receivables have recoverable issues based on the closely contact and past experience
to justify it.

The Company assesses ECL on an annual
basis to ensure that the ECL allowance remains appropriate and reflective of current credit risk conditions. There have been no changes
in estimation techniques or significant assumptions used in calculating ECL during the current reporting period. A loan receivable is
written off when there is objective evidence that the debtor is experiencing significant financial hardship and there is no reasonable
expectation of recovery. Indicators of such conditions include the debtor entering liquidation or significant deterioration in creditworthiness
with no expected future cash flows.

The following table details the provision
for ECL based on the Company’s provision matrix, based on past due status is not further distinguished between the Company’s
different customer base:

                                        Loan receivables – days past due                                                                             
                                        Not past                                           1 to 30                                                   
                                        RM                                                 RM                                                        
  Lifetime ECL – December 31, 2023                                            237,382                   31,125       3,102         616      272,225  
  Lifetime ECL – December 31, 2024                                            460,365                    4,526      21,139      21,492      510,281  

F-36

  12      CASH AND BANK BALANCES  
 ──────────────────────────────────

                                      RM                               RM                                US$                 
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                      December 31,                     December 31,                                          
  Cash and bank balances                                4,637,260                        35,214,258               7,877,205  
  Fixed deposit                                                 -                         1,000,000