The tax on the Company’s profit before income tax differs from the theoretical amount that would arise using the Malaysia’s standard rate of income tax as follows

As at December 31, 2025, the Company had unutilised tax losses carried forward of US$1.4 million (2024: US$1.6 million) for which no deferred tax asset has been recognised. These losses relate to subsidiaries that have been loss-making for several years, and no convincing evidence is currently available that taxable profit will be available against which the tax losses can be utilised.

The tax losses can be carried forward for 7 years, as applicable under Malaysia law. The potential deferred tax asset not recognised amounts to US$341.0 thousand (2024: US$392.6 thousand), calculated at the applicable tax rate of 24%.

Management will continue to review the future profitability of the entities concerned to assess whether the recognition criteria for deferred tax assets are met.