THE quantum of slow payments among Singapore firms rose for the first time in six quarters, according to the Singapore Commercial Credit Bureau (SCCB).
Slow payments rose for the first time since Q2 2023, inching up 0.05 percentage point to 44.05 per cent in Q4, from 44 per cent in Q3, according to data released by the firm on Tuesday (Jan 7). The services sector led the increase.
SCCB’s chief executive Audrey Chia said: “The increase in slow payments in Q4 2024 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 per cent during the period, compared with 41.2 per cent 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 point from 41.05 per cent. Slow payments however dropped 0.1 percentage point from 44.15 per cent, 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.
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Chia also said: “Moving into 2025, firms should continue to exercise more prudence in cashflow management in the months ahead.”
By industry
Four out of the five industries recorded a rise in slow payments quarter on quarter – namely construction, retail, services and wholesale. Year on year, however, only the manufacturing sector observed 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.
On the quarter, slow payments in the services sector rose by 0.2 percentage point to 42.55 per cent. Year on year, however, it fell marginally by 0.35 percentage point from 42.9 per cent.
Slow payments for the construction industry rose 0.04 percentage point quarter on quarter, but fell 0.02 percentage point year on year to 55.3 per cent.
In the retail sector, slow payments climbed 0.03 percentage point quarter on quarter to 43.15 per cent. It was, however, down 0.03 percentage point from 43.18 per cent in Q4 2023.
The quarter-on-quarter decline came amid an increase in slow payments by retailers of general merchandise, fashion apparel as well as food and beverages, said SCCB.
Payment delays within the wholesale trade sector rose marginally due to an increase in both slow payments by durable and non-durable goods wholesalers. On the quarter, payment delays rose by 0.05 percentage point to 40.15 per cent, and down 0.2 percentage point from the same period last year.
Slow payments in the manufacturing sector declined 0.03 percentage points quarter on quarter to 39.12 per cent in Q4, mainly due to a fall in delays by electronics, instruments and chemicals makers. On the year, however, slow payments were up 0.1 percentage points from 39.02 per cent.
For the full year, the annual average proportion of slow payments stood at 44.06 per cent, down from 44.24 per cent in 2023. The average proportion of prompt payments was at 41.13 per cent in 2024, up from 40.99 per cent the previous year. Partial payments also inched up slightly to 14.81 per cent in 2024, from 14.78 per cent.
