Slow payments fell 1.81 ppt to 38.94% in Q3

The retail sector saw the highest increase of 14.27 ppt to 44.11%.

Local payment performance continued to approach a downward trend as slow payments slipped by 1.81ppt YoY to 38.94% in Q3, according to the Singapore Commercial Credit Bureau (SCCB). Meanwhile, prompt payments eased up as it inched up only by 0.88 YoY ppt to 48.31%.

On the other hand, partial payments rose 0.92 ppt to 12.74% in Q3 2018.

The retail sector experienced the highest increase in slow payments with a 14.27 ppt QoQ jump 44.11% in Q3, largely backed by the increase in slow payments amongst retailers of food and beverage and miscellaneous goods.

“The spike in slow payments within the retail sector is the largest which we have seen since Q2 2012,” D&B Singapore CEO Audrey Chia said. “This was largely due to weaker sales in the previous quarter resulting from muted consumer sentiments within key sub-sectors such as food and beverage and automobiles.”

In the construction sector, improvement sustained as slow payments only decreased by 0.05 ppt to 47.28%. According to SCCB, special trade contractors accounted for the largest decrease in slow payments, down by 3.17 ppt to 44.61% in Q3 2018.

Meanwhile, the heavy construction sector saw the highest increase of 2.31 ppt in slow to 48.66% whilst payment delays within the building construction sector rose slightly by 1.53ppt to 49.07%.

Amidst a decrease in payment delays by manufacturers of apparels and textiles, petroleum and coal products and electronic components, the manufacturing sector saw slight improvements in payment delays with a drop of 1.18ppt to 37.82% in Q3 2018.

Manufacturers of apparels and textiles recorded the largest decrease in slow payments of 8.51 ppt to 34.65%. Following the segment are slow payments by manufacturers of petroleum and coal, down by 5.38ppt to 34.72%.

Slow payments by manufacturers of electronic components dipped 4.22 ppt to 29.81% in Q3.

In the services sector, slow payments slipped 0.84 ppt to 36.70% with the business services sub-sector having the highest drop of 3.70 ppt to 39.42%. The engineering and health services sub-sector also saw a drop of 2.49 ppt and 1.07 ppt to 37.35% and 33.99 ppt, respectively.

For wholesale trade, payment delays dropped 1.65 ppt to 35.29% WoW in Q3. Slow payments by wholesalers of durable goods fell slightly by 2.53 ppt to 35.06% in Q3 2018.

Meanwhile, payment delays by wholesalers of non-durable goods dropped moderately by 1.65 ppt to 35.94% in Q3.