Slow payments inched up 0.05 percentage point to 44.05 per cent in the fourth quarter, from 44 per cent in the third quarter, according to data released on Jan 7. — The Straits Times
SINGAPORE: The quantum of slow payments among Singapore firms rose for the first time in six quarters, led by the services sector, according to the Singapore Commercial Credit Bureau (SCCB).
Slow payments inched up 0.05 percentage point to 44.05% in the fourth quarter of 2024 (4Q24), from 44% in the third quarter, according to data released by the firm on Tuesday.
This was the first rise since 3Q23.
SCCB chief executive Audrey Chia said: “The increase in slow payments in 4Q24 was due primarily to a rise in payment delays by the services sector.
“Overall, however, local companies are still relatively in a better state compared to a year ago.”
Prompt payments, on the other hand, slid 0.05 percentage point to 41.15% during the period, compared with 41.2% in the previous quarter, according to the credit and risk information solutions provider.
On a year-on-year basis, prompt payments climbed 0.1 percentage points from 41.05%. Slow payments, however, dropped 0.1 percentage point from 44.15%, while partial payments remained unchanged.
The bureau said that both prompt and slow payments accounted for slightly more than two-fifths of total payment transactions. It compiled the data by monitoring more than 2.4 million payment transactions of firms.
“Moving into 2025, firms should continue to exercise more prudence in cashflow management in the months ahead,” Chia said.
Four out of the five industries monitored recorded a rise in slow payments quarter-on-quarter, namely, construction, retail, services and wholesale. Year-on-year, however, only the manufacturing sector saw a rise in slow payments.
Payment performance in the services sector worsened slightly after six consecutive quarters of improvement due to an increase in payment delays by the consumer services, educational and recreation sub-segments.
In the quarter, slow payments in the services sector rose by 0.2 percentage points to 42.55%. — The Straits Times/ANN
