Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 21

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 3
Chunk 21
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 required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company
can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but
any such an election to opt out is irrevocable. We have elected not to opt out of such extended transition period, which means that when
a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company,
can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of our
financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has
opted out of using the extended transition period difficult or impossible because of the potential differences in accountant standards
used.

We will incur significantly increased costs
and devote substantial management time as a result of operating as a public company.

As a public company, we will incur significant
legal, accounting, and other expenses that we did not incur as a private company. For example, we will be subject to the reporting requirements
of the Exchange Act, and will be required to comply with the applicable requirements of the Sarbanes-Oxley Act and the Dodd-Frank Act,
as well as rules and regulations subsequently implemented by the SEC and Nasdaq including the establishment and maintenance of effective
disclosure and financial controls and changes in corporate governance practices. We expect that compliance with these requirements will
increase our legal and financial compliance costs and will make some activities more time consuming and costly. The Exchange Act requires,
among other things, that we file annual and current reports with respect to our business and results of operations. We expect to incur
significant expenses and devote substantial management effort toward ensuring compliance with the auditor attestation requirements of
Section 404 of the Sarbanes-Oxley Act, which will increase when we are no longer an “emerging growth company,” as defined
by the JOBS Act. We may need to hire additional accounting and financial staff with appropriate public company experience and technical
accounting knowledge. We cannot predict or estimate the amount of additional costs we may incur as a result of becoming a public company
or the timing of such costs. As a result, management’s attention may be diverted from other business concerns, which could adversely
affect our business and results of operations.

In addition, changing laws, regulations and standards
relating to corporate governance and public disclosure are creating uncertainty