Struggling manufacturers overtake builders as most delinquent debtors in Q1

For the first time in almost three years.

Manufacturing firms have earned the dubious distinction of being Singapore’s most delinquent debtors in the first quarter of the year, overtaking the policy-battered construction sector for the first time in three years.

Data released today by the Singapore Commercial Credit Bureau (SCCB) showed that the manufacturing sector recorded the highest proportion of slow payments, rising by 11.69 percentage points to 53.06% in Q1 from 41.37% in Q4 last year.

According to SCCB, manufacturers of petroleum and coal products, primary metals and transportation equipment registered the slowest payments at 59.51%, 59.09% and 58.30% respectively.

Due to a contraction within the electronics segment, slow payments within the electronics sub-sector experienced the largest increase by 11.87 percentage points to 49.79 per cent in Q1 2015.

On a year-on-year basis, slow payments within the sector surged significantly by 12.32 percentage points to 53.06% in Q1 2015.

“Last quarter, the manufacturers have also overtaken the construction sector as the slowest paymaster with payment delays accounting for more than half of the payment transactions for the first time in nearly three years,” noted Audrey Chia, D&B Singapore’s Chief Executive Officer.