Contributor Lok Jen suggested for the Accounting and Corporate Regulatory Authority (ACRA) to classify companies according to their financial health to better protect our consumers. ACRA has provided the reply below:
Dear Lok Jen
I refer to your feedback posted in REACH forum regarding your suggestion for ACRA to classify companies and indicate if they were likely to close down so as to help protect consumers.
Please note that besides profitability, there are many other factors involved in a company closing down. ACRA would therefore not be in a position to determine based on audited financial statements, if a company is likely to close down. However, consumers can make use of ACRA’s information services to conduct basic background checks on business entities and make informed business decisions.
ACRA in collaboration with the Consumers Association of Singapore (CASE) has jointly published an online consumer guide which provide tips on how to do so. You can access the guide through this link: https://www.acra.gov.sg/Publications/Guides/ACRA_s_Consumer_Guide/
Thank you for your feedback and we hope you will find the online guide useful.
Accounting and Corporate Regulatory Authority