Prompt payments by Singapore companies up in Q1, but credit bureau urges vigilance

[SINGAPORE] The quantum of prompt payments made by companies improved in the first quarter this year, based on data released by the Singapore Commercial Credit Bureau (SCCB) on Tuesday (Apr 15).

Prompt payments improved by 0.03 percentage point, from 41.15 per cent in the fourth quarter of 2024 to 41.18 per cent in Q1 2025. This represented a 0.11 percentage point climb year on year, compared to 41.07 per cent in Q1 2024.

Partial payments inched slightly downwards from the previous quarter, down 0.02 percentage point from 14.8 per cent the previous quarter to 14.78 per cent in Q1 2025. On a year-on-year basis, the proportion of partial payments fell 0.03 percentage point from 14.81 per cent in Q1 2024.

Meanwhile, slow payments inched lower by 0.01 percentage point to 44.04 per cent. This followed a hike of 0.05 percentage point in Q4 2024, bucking a trend of five consecutive quarters of declining slow payments since the second quarter of 2023, when payment delays fell from 44.32 per cent to 44 per cent. The trend had then reversed from 44 per cent to 44.05 per cent during Q4 2024.

These display a continued uptrend in payment performance for Q1 2025, albeit a marginal one, said SCCB’s chief executive Audrey Chia. “Given the economic uncertainties by the recent spate of global events, firms have to continue to exercise greater vigilance in ensuring healthy cashflows,” she cautioned.

How they compare

Despite the overall decline in payment delays, only two sectors among the five recorded – retail and services – observed less slow payments. There were slight increases in slow payments in the construction, manufacturing and wholesale trade sectors.

Payment delays in the construction sector rose marginally by 0.02 percentage point to 55.32 per cent during the quarter, representing a 0.12 percentage point increase year on year. This was led by special trade contractors, up 0.05 percentage point from the previous quarter to 55.45 per cent, the bureau said.

Delayed payments in the manufacturing sector surged the most among all reported industries since last year, up 0.15 percentage point since Q1 2024.

Slow payments increased by 0.03 percentage point to 39.15 per cent in Q1 2025, from 39.12 per cent in Q4 2024. This was due to an increase in payment delays by manufacturers of electronics, transportation equipment and instruments, noted SCCB.

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Likewise, payment delays worsened for the wholesale trade sector in Q1 2025, rising 0.05 percentage point from the last quarter to 40.2 per cent.

Delays increased for both wholesalers of non-durable goods, up 0.07 percentage point to 40.32 per cent; and durable goods, up 0.03 percentage point to 40.08 per cent. On the year, however, payment delays by wholesalers improved by 0.2 percentage point, down from 40.4 per cent in Q1 2024.

For the retail and services sectors, however, payment delays improved marginally.

Delays in the retail sector fell 0.1 percentage point to 43.05 per cent in Q1 2025, from 43.15 per cent in Q4 2024. This was due to less slow payments by general merchandise, furniture and home furnishing, as well as food and beverage retailers.

In services, slow payments in the business, educational and healthcare subsectors improved 0.05 percentage point in Q1 2025 to 42.5 per cent. This was down 0.25 percentage point year on year, from 42.75 per cent in Q1 2024.