Local firms’ payment performance worsens slightly in Q3: SCCB
THE payment performance of local firms deteriorated slightly in the third quarter of 2022, said the Singapore Commercial Credit Bureau (SCCB) on Tuesday (Oct 4).
Prompt payments slid 0.1 percentage point to 41 per cent during the period, compared with 41.2 per cent the previous quarter.
Slow payments, meanwhile, inched up 0.1 percentage point to 44.2 per cent in Q3, from 44.1 per cent in the second quarter. Partial payments inched up 0.05 percentage point to 14.8 per cent, from 14.75 per cent the previous quarter.
Year on year, prompt payments climbed 0.5 percentage point from 40.5 per cent, slow payments dropped by 0.8 percentage point from 44.9 per cent, while partial payments rose by 0.2 percentage point from 14.6 per cent.
By sector, the construction and retail sectors saw a dip in slow payments quarter on quarter, while the manufacturing, services and wholesale sectors saw a rise in slow payments.
Year on year, however, four out of five industries saw a drop in slow payments. They are the construction, manufacturing, retail and services industries.
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Slow payments for the construction industry fell 0.1 percentage point quarter on quarter and 0.4 percentage point year on year to 55.7 per cent.
In the retail sector, slow payments stood at 43.5 per cent, down 0.1 percentage point quarter on quarter and 1.7 percentage points lower year on year.
For manufacturing, slow payments rose 0.1 percentage point quarter on quarter to 38.4 per cent, but was 0.4 percentage point lower year on year. In the services industry, slow payments was up 0.03 percentage point to 43.2 per cent, but down 1.3 percentage points year on year.
Meanwhile, the slow payments in the wholesale sector gained 0.4 percentage point on the quarter to reach 40.1 per cent, and was 0.01 percentage point higher year on year. This came amid a weakened outlook for external demand and ongoing global supply chain risks, said SCCB chief executive Audrey Chia.
The slight deterioration in payment performance overall is no surprise, Chia noted. She added that any further improvements in payment performance would likely be gradual in the coming months.
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.
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