Company: KNRX
Filing Date: 2025-08-21
Form Type: F-1/A
Source: 0001641172-25-025066
Chunk: 46

Company: KNOREX LTD.
Filing Date: 2025-08-21
Form: F-1/A
Chunk 46
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 taxes and other laws, regulations, principles and
interpretations. Any of these occurrences could materially and adversely affect our business, financial condition, results of operations
and prospects.

| 24 |

Substantial inflationary pressures in Asia where may prompt the governments to take action to control the growth of the economy and inflation, which could lead to a significant decrease in our profitability in the future.

While many of the economies in Asia, including but not limited to Singapore, Vietnam, India and Malaysia where we operate in, have experienced rapid growth over the last two decades, they currently are experiencing inflationary pressures. As governments take steps to address the current inflationary pressures, there may be significant changes in the availability of bank credit, interest rate increases, limitations on loans, or restrictions on currency conversions and foreign investment. There also may be imposition of price controls. If prices for the products we source or if wages rise at a rate that is insufficient to compensate for the rise in these costs, it may have an adverse effect on our profitability. If these or other similar restrictions are imposed by a government to influence the economy, it may lead to a slowing of economic growth.

Our subsidiary is subject to the laws of Singapore, which differ in certain material respects from the laws of the United States.

Our subsidiary in Singapore, Knorex SG, is required to comply with the laws of Singapore, certain of which are capable of extra-territorial application. Our Singapore subsidiary is required to comply with certain provisions of the Securities and Futures Act 2001 of Singapore, which prohibit certain forms of market conduct and information disclosures, and impose criminal and civil penalties on corporations, directors and officers in respect of any breach of such provisions.

We face uncertainties in the change of the regulatory landscape concerning data protection in Malaysia in light of the undergoing potential amendments to the Personal Data Protection Act 2010.

The proposed amendments
to the Personal Data Protection Act 2010 (PDPA 2010) seek to intensify penalties for breaches of data protection regulations in Malaysia
and to include elevating the current government department, the Personal Data Protection Department (JPDP), to an independent statutory
commission. This elevation intends to bolster JPDP’s enforcement capabilities and autonomy, providing necessary resources and authority
to effectively regulate data protection and enforce PDPA provisions.

The proposed amendments are expected to encompass provisions mandating increased fines for cyber-attackers. Additionally, it is proposed to make it obligatory for data users to appoint a data protection officer and report any instances of data leakage to the Ministry’s