Chart of the Day: More firms reported payment delays last year

The share of Singapore firms with payment delays fell to 62% from 77%.

The share of companies reporting payment delays across Asia Pacific climbed to 60% in 2023 from 57% in 2022 as tighter payment terms grip businesses, according to a report by Coface.

The Coface Asia Corporate Payment Survey 2024 report showed there were fewer payment delays recorded across all markets covered but the share of companies experiencing payment delays went up in China and Japan.

On a brighter note, the share of Singapore businesses reporting payment delays went down to 62% last year from 77% in 2022.

Excessive competition, softening demand, slowdown in cash flow and payment defaults by customers were the main reasons for payment delays in the region.

By sector, textile and construction booked the highest jump in late payments reported.

Meanwhile, Singapore was among the three Asian nations with the highest increase in the proportion of companies suffering from ultra-long payment delays last year.