{"url_path":"/sec/vcig/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-07-15","source_url":"https://www.sec.gov/Archives/edgar/data/1930510/0001213900-26-078044-index.html","accession_number":"0001213900-26-078044","cik":"0001930510","ticker":"VCIG","issuer_name":"VCI Global Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1930510/0001213900-26-078044-index.html","primary_entity_key":"0001930510","primary_entity_name":"VCI Global Ltd"},"word_count":1273,"has_tables":true,"body_markdown":"**Item\n11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**\n\n \n\nThe\nmanagement of the Group monitors and manages the financial risks relating to the operations of the Group to ensure appropriate measures\nare implemented in a timely and effective manner. These risks include market risk (including currency risk and interest rate risk), credit\nrisk and liquidity risk.\n\n** **\n\n**Market\nrisk management**\n\n** **\n\nThe\nGroup activities are exposed primarily to the financial risks of changes in foreign currency exchange rates and interest rates. Management\nmonitors risks associated with changes in foreign currency exchanges rates and interest rates and will consider appropriate measures\nshould the need arise.\n\n \n\nThere\nhas been no significant change to the Group’s exposure to market risk or the manner in which it manages and measures the risk.\n\n \n\n**Foreign\ncurrency risk management**\n\n** **\n\nThe\nGroup also transacts business in foreign currencies other than its functional currencies, as further disclosed below, and is therefore\nexposed to foreign exchange risk.\n\n \n\nThe\ncurrency exposure of financial assets and financial liabilities denominated in currencies other than the Group’s functional currencies\nare as follows:\n\n \n\n  \nAssets  \nLiabilities \n\n  \n2024  \n2025  \n2024  \n2025 \n\n  \nUS$  \nUS$  \nUS$  \nUS$ \n\nSingapore Dollar \n -  \n 90,615  \n -  \n - \n\nMalaysia Ringgit \n 17,762,178  \n 24,079,176  \n 4,220,536  \n 4,501,621 \n\n \n\n*Foreign\ncurrency sensitivity*\n\n \n\nThe\nfollowing table details the sensitivity to a 5% increase and decrease in the related foreign currencies against the functional currency\n(“US$”) with all the other variables held constant. 5% is the sensitivity rate used when reporting foreign currency risk internally\nto key management personnel and represents management’s assessment of the possible change in foreign exchange rates. The sensitivity\nanalysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a\n5% change in foreign currency rates.\n\n \n\n  \n2024  \n2025 \n\n  \nUS$  \nUS$ \n\nSingapore Dollar \n -  \n 4,531 \n\nMalaysia Ringgit \n 677,082  \n 978,878 \n\n** **\n\n72\n\n \n\n \n\n**Interest\nrate risk management**\n\n** **\n\nThe\nGroup is exposed to interest rate risk as the Group has bank loans which are interest bearing. The interest rates and terms of repayment\nof the loans are disclosed in the Note to the financial statements. The Group currently does not have an interest rate hedging policy.\n\n** **\n\n*Interest\nrate sensitivity analysis*\n\n** **\n\nThe sensitivity analysis below has been determined based on the exposure\nto interest rate for non-derivative instruments at the end of the reporting period. A 50 basis point (2024: 50) increase or decrease is\nused when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably\npossible change in interest rates.\n\n* *\n\nIf interest rates on loans had been 50 basis\npoints (2024: 50) higher/lower and all other variables were held constant, the Group’s profit for the year would decrease/increase\nby approximately US$3,600 (2024: US$1,118, 2023: US$370).\n\n \n\n**Credit\nrisk management**\n\n** **\n\nCredit\nrisk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. At\nthe end of each reporting period, the Group maximum exposure to credit risk which will cause a financial loss to the Group due to failure\nto discharge an obligation by the counterparties arises from the carrying amount of the respective recognized financial assets as stated\nin the Statements of Financial Position.\n\n \n\nIn\norder to minimise credit risk, the Group has delegated its finance team to develop and maintain the Group’s credit risk grading\nto categorise exposures according to their degree of risk of default. The finance team uses publicly available financial information\nand the Group’s own historical repayment records to rate its major customers and debtors. The Group’s exposure and the credit\nratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved\ncounterparties.\n\n \n\nThe\nGroup’s current credit risk grading framework comprises the following categories:\n\n \n\nCategory\n \nDescription\n \nBasis\nfor recognising\n\nECL\n\nPerforming\n \nThe\ncounterparty has a low risk of default and does not have any past-due amounts\n \n12-month\nECL\n\nDoubtful\n \nThere\nhas been a significant increase in credit risk since initial recognition\n \nLifetime\nECL- not credit-impaired\n\nIn\ndefault\n \nThere\nis evidence indicating the asset is credit impaired\n \nLifetime\nECL - credit impaired\n\nWrite-off\n \nThere\nis evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery\n \nAmount\nis written off\n\n** **\n\nFor\ntrade receivables, the Group has applied the simplified approach allowed in the accounting standard to measure the loss allowance at\nlifetime ECL. The Group determines the ECL on these items by using a provision matrix, estimated based on historical credit loss experience\nbased on the past default experience of the debtor, general economic conditions of the industry in which the debtors operate and an assessment\nof both the current as well as the forecast direction of conditions at the reporting date. To measure the expected credit losses, trade\nreceivables has been grouped based on shared credit risk characteristics (including high risk, normal risk and low risk type).\n\n \n\nThe\ndirectors of the Company considered that the ECL for non-credit impaired trade receivables is insignificant as at the end of the reporting\nperiod.\n\n** **\n\n**Liquidity\nrisk management**\n\n** **\n\nLiquidity\nrisk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds.\n\n \n\nIn\nassessing our liquidity, we monitor and analyse our cash on-hand and our operating expenditure commitments. Our liquidity needs are to\nmeet our working capital requirements and operating expenses obligations. To date, we have financed our operations primarily through\ncash flows from operations, equity financing, and short-term borrowing from banks and third parties.\n\n \n\nBased\non the above considerations, management is of the opinion that the Company has sufficient funds to meet its working capital requirements\nand debt obligations, for at least the next 12 months from the unaudited condensed consolidated financial statement filing date. However,\nthere is no assurance that management will be successful in their plans. There are several factors that could potentially arise that\ncould undermine the Company’s plans, such as changes in the demand for its services, economic conditions, its operating results\nnot continuing to deteriorate and its bank and shareholders being able to provide continued financial support.\n\n \n\nThe\nGroup maintains sufficient cash and cash equivalent, and internally generated cash flows to finance their activities.\n\n \n\n73\n\n \n\n \n\n*Liquidity\nrisk analyses*\n\n \n\nNon-derivative\nfinancial liabilities\n\n \n\nThe\nfollowing table details the remaining contractual maturity for non-derivative financial liabilities. The tables have been drawn up based\non the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The\ntable includes both interest and principal cash flows. The adjustment column represents the possible future cash flows attributable\nto the instrument included in the carrying amount of the financial liability on the statement of financial position.\n\n \n\n  \nWeighted\naverage\neffective\ninterest rate  \nOn\ndemand\nor within\n1 year  \nWithin\n2 to 5 years  \nTotal \n\n  \n%  \nUS$  \nUS$  \nUS$ \n\n  \n   \n   \n   \n  \n\n2025 \n   \n   \n   \n  \n\nNon-interest bearing \n -  \n 13,929,371  \n 456,084  \n 14,385,455 \n\nFixed interest rate \n 3.5-5%  \n 399,858  \n 346,754  \n 746,612 \n\nTotal \n    \n 14,329,229  \n 802,838  \n 15,132,067 \n\n  \n    \n    \n    \n   \n\n2024 \n    \n    \n    \n   \n\nNon-interest bearing \n -  \n 4,902,244  \n -  \n 4,902,244 \n\nFixed interest rate \n 3.5-5%  \n 82,431  \n 37,533  \n 119,984 \n\nVariable interest rate \n BLR+2.6%  \n 160,455  \n 21,936  \n 182,391 \n\nTotal \n    \n 5,145,130  \n 59,489  \n 5,204,619 \n\n  \n    \n    \n    \n   \n\n2023 \n    \n    \n    \n   \n\nNon-interest bearing \n -  \n 4,507,068  \n -  \n 4,507,068 \n\nFixed interest rate \n 3.5-4.31%  \n 148,371  \n 191,363  \n 339,734 \n\nVariable interest rate \n BLR+2.6%  \n 9,520  \n 17,711  \n 27,231 \n\nTotal \n    \n 4,664,959  \n 209,074  \n 4,874,033 \n\n \n\nNon-derivative\nfinancial assets \n\n \n\nAs\nat the end of the reporting period, the non-derivative financial assets are interest free and repayable on demand.\n\n \n\n*Fair\nvalue of financial assets and financial liabilities*\n\n \n\nThe\nmanagement considers that the carrying amounts of Group’s financial assets and financial liabilities approximate their respective\nfair values due to the relatively short-term maturity of these financial instruments. The fair values of other classes of financial assets\nand liabilities are disclosed in the respective notes to financial statements."}