Guess which sector is the slowest debt payor in Singapore

They paid dues 31 days longer.

According to a release, companies in Singapore's electronics sector have significantly slowed down the payment of their debts.

The Q2 2013 Trade Payment Data released by the DP SME Commercial Credit Bureau (the Bureau) found the average time taken for electronics companies to pay their debts has slowed over the last 12 months from 38 days a year ago to 69 days (31 days longer). In other words they are taking 82 per cent longer to pay their debts compared to a year ago.

The findings are based on payments made by more than 120,000 corporations and SMEs in Singapore each quarter.

The electronics sector recorded the biggest slowdown of any industry during the last three months, with the average time taken to pay a debt increasing by 15 days.

At the end of Q2 2013, 83 per cent of all debts owed by electronic companies were in default by one day or more. Of these unpaid debts, 42 per cent were more than 90 days in arrears.

Ms Ong Siew Kim, Senior General Manager of DP Information Group (DP Info) said deterioration of the payment behaviour of electronics firms was due to the downturn in the industry in 2012.

"Singapore's electronics sector experienced a cyclical downturn due to lower demand in the semiconductor industry. The downturn placed pressure on the cashflow of companies, causing them to slow down the repayment of their debts to other companies."

"This slowdown in debt payment is expected to be temporary as there are now strong signs the electronics sector is recovering," Ms Ong said.

DAYS TURNED CASH

Across all industries, the time taken to pay debts has remained stable. The Days Turned Cash (DTC) National Average - a tool for measuring the number of days a company takes to pay its creditor once the debt is due – increased from 38 in Q1 2013 to 39 days in Q2 2013.