SINGAPORE (THE BUSINESS TIMES) - The payment performance of firms in Singapore has improved slightly after two consecutive quarters of deterioration, with all sectors recording a decline in slow payments on a quarter-on-quarter basis, said the Singapore Commercial Credit Bureau (SCCB) on Tuesday (Jan 4).
Data provider Dun & Bradstreet Singapore's chief executive, Ms Audrey Chia, noted that there are "more visible signs of improvement" in local payment performance largely because of a decrease in slow payments from the retail and services sectors, which experienced higher seasonal cash flows from the year-end festivities.
Slow payments fell to 44.3 per cent in the fourth quarter from 44.9 per cent in the third quarter, although it increased from 43.2 per cent in the same period last year.
Meanwhile, prompt payments rose to 40.8 per cent in the fourth quarter from 40.5 per cent in the previous quarter, but dropped from 41.3 per cent in the year-ago period.
As for partial payments, occurrences were at 14.9 per cent in the fourth quarter, up from 14.6 per cent in the third quarter and down from 15.6 per cent in the same period in 2020.
On a sectoral basis, while all sectors recorded a decline in slow payments quarter on quarter, only the manufacturing and wholesale sectors experienced a year-on-year fall in slow payments.
The construction sector accounted for the highest proportion of payment delays, although it dipped slightly by 0.1 percentage point on a quarterly basis to 56.5 per cent in the fourth quarter.
The manufacturing sector saw a fall in payment delays from manufacturers of chemicals, transportation equipment and electronics, while the retail sector registered a fall in slow payments by retailers of food and beverages, general merchandise, apparel and accessories.
As for the services sector, it recorded a fall in payment delays in personal services, hotels and accommodation, and business services, while the wholesale trade industry saw a fall in slow payments by wholesalers of both durable and non-durable goods.
Ms Chia said: "Moving into 2022, we anticipate a continued trend of gradual improvements in the payment performance of local firms."
The overall payment performance of local firms had also improved slightly in 2021 from the previous year.
For the full year, the annual average proportion of prompt payments was at 41.2 per cent in 2021, up from 40.7 per cent in 2020, while the average proportion of slow payments was at 44.2 per cent in 2021, down slightly from 44.7 per cent in 2020.
SCCB is a subsidiary under Credit Bureau Asia, a credit and risk information solutions provider in South-east Asia.
Prompt payment refers to when 90 per cent or more of total bills are paid within the agreed payment terms, while slow payment happens when less than 50 per cent of total bills are paid within the agreed terms. Partial payment refers to when between 50 per cent and 90 per cent of total bills are paid within the agreed payment terms.
