Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 22

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 3
Chunk 22
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 for public companies, increasing legal and financial compliance
costs and making some activities more time consuming. These laws, regulations and standards are subject to varying interpretations, in
many cases due to their lack of specificity, and as a result, their application in practice may evolve over time as regulatory and governing
bodies provide new guidance. These factors could result in continuing uncertainty regarding compliance matters and higher costs necessitated
by ongoing revisions to disclosure and governance practices. We will continue to invest resources to comply with evolving laws, regulations
and standards, and this investment may result in increased general and administrative expenses and a diversion of management’s time
and attention from revenue-generating activities to compliance activities. If our efforts to comply with new laws, regulations and standards
differ from the activities intended by regulatory or governing bodies due to ambiguities related to their application and practice, regulatory
authorities may initiate legal proceedings against us, and our business could be adversely affected.

As a result of disclosure of information as a
public company, our business and financial condition have become more visible, which may result in threatened or actual litigation, including
by competitors and other third parties. If the claims are successful, our business operations and financial results could be adversely
affected, and even if the claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary
to resolve them, could divert the resources of our management and adversely affect our business operations and financial results. These
factors could also make it more difficult for us to attract and retain qualified colleagues, executive officers and Board members.

We also expect that operating as a public company
will make it more difficult and more expensive for us to obtain director and officer liability insurance on the terms that we would like.
As a result, it may be more difficult for us to attract and retain qualified people to serve on our Board, our Board committees or as
executive officers.

If we are unable to maintain effective disclosure
controls and procedures and internal control over financial reporting, our share price and investor confidence could be materially and
adversely affected.

We are required to maintain both disclosure controls
and procedures and internal control over financial reporting that are effective. Because of their inherent limitations, internal control
over financial reporting, however well designed and operated, can only provide reasonable, and not absolute, assurance that the controls
will prevent or detect misstatements. Because of these and other inherent limitations of control systems, there is only the reasonable
assurance that our controls will