SINGAPORE - The payment performance of local firms weakened slightly in the second quarter of this year following two consecutive quarters of improvements, according to Singapore Commercial Credit Bureau (SCCB).
Its report on Tuesday (July 3) showed that prompt payment in the three months to June edged lower quarter-on-quarter by 1.65 percentage points to 49.55 per cent, and fell 0.76 percentage points year-on-year to 49.55 per cent.
Meanwhile, slow payments rose slightly quarter-on-quarter by 1.44 percentage points to 37.18 per cent, but dropped by 1.29 percentage points year-on-year to 37.18 per cent.
Partial payments inched upwards by 0.21 percentage points quarter-on-quarter to 13.27 per cent. Year-on-year, they rose 2.05 percentage points to 13.27 per cent.
By sector, quarter-on-quarter slow payments improved in the services and construction sectors, but deteriorated in manufacturing, wholesale and retail. The wholesale trade sector recorded the largest increase in payment delays due largely to a rise in slow payments for durable goods, the SCCB noted.
Audrey Chia, D&B Singapore's chief executive officer, said: "On the overall, payment performance has remained at relatively healthy levels despite the slight increase in slow payments from the previous quarter. We have also seen a spike in partial payments within the manufacturing and wholesale trade sectors over the past quarter which is a positive sign as well.
"From a year-on-year perspective, both partial payments and slow payments have improved on the back of growth within the manufacturing, retail and services compared to a year ago."
D&B compiles the figures by monitoring over 1.6 million payment transactions of firms operating through its SCCB.