THE payment performance of local firms has rebounded in the third quarter, but payment delays for manufacturing and wholesale continue to deteriorate, said the Singapore Commercial Credit Bureau (SCCB) on Monday (Oct 2).

The credit and risk information solutions provider in South-east Asia noted that both prompt and slow payments accounted for slightly more than two-fifths of total payment transactions, similar to the previous two quarters.

Prompt payments improved slightly by 0.04 percentage point to 40.96 per cent from 40.92 per cent on a quarter-on-quarter (qoq) basis. On the year, prompt payments slid by 0.06 percentage point from 41.02 per cent.

Slow payments fell slightly by 0.07 percentage point to 44.25 per cent from 44.32 per cent qoq. It, however, edged up by 0.07 percentage point from 44.18 per cent year on year (yoy).

Partial payments climbed by 0.03 percentage point qoq to 14.79 per cent, though it fell 0.01 percentage point from 14.80 per cent on the year.

From a sectoral perspective, two of the five industries – manufacturing and wholesale – continued to register both qoq and yoy increases in slow payments.

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Slow payments in the manufacturing sector rose by 0.14 percentage point to 39.12 per cent qoq, increasing for the sixth consecutive quarter due to increased payment delays by manufacturers of electronics, chemicals and instruments.

Payment delays among manufacturers jumped 0.72 percentage point from 38.40 per cent on the year.

Within the wholesale sector, payment delays increased by 0.08 percentage point qoq and 0.40 percentage point yoy to 40.50 per cent in Q3, led by an increase in both slow payments by wholesalers of both durable and non-durable goods.

Meanwhile, the construction sector improved in Q3 after two straight quarters of rising payment delays. Its slow payments fell by 0.30 percentage point, on both a yoy and a qoq basis, to 55.40 per cent.

The building construction sector registered the largest decline in slow payments, down by 0.21 percentage point to 56.02 per cent in Q3 from 56.23 per cent in Q2.

Payment performance in the retail sector also improved, with decreased payment delays by retailers of general merchandise, apparels and accessories and furniture and home furnishing.

The retail sector recorded a 0.13 percentage point qoq drop, and a 0.28 percentage point yoy reduction to 43.22 per cent in slow payments in Q3.

The services sector continued to perform better, with the second consecutive quarter registering a drop in payment delays of 0.11 percentage point, led by business, health and consumer services.

On a yoy basis, its slow payments fell by 0.16 percentage point to 43.02 per cent.

SCCB’s chief executive officer Audrey Chia noted that firms are generally making more prompt payments compared with the first two quarters of 2023, and partial payments have also been rising to a one-year high.

“This is a good indication of the level of prudence which firms have displayed in optimising their cash flows and managing their credit risks...

“However, payment delays for manufacturing and wholesale continue to deteriorate, due largely to prolonged weakness in those sectors,” he added.