Construction and Retail Sectors Lead Recovery, While Manufacturing Faces Challenges
Singapore’s payment performance improved in Q3 2023, marking a recovery after two consecutive quarters of rising payment delays, according to the Singapore Commercial Credit Bureau (SCCB).
The construction and retail sectors showed signs of improvement, while manufacturing and wholesale industries continued to experience increasing payment delays.
Prompt payments slightly increased to 40.96%, while slow payments dropped marginally to 44.25%.
The construction sector saw a decline in payment delays, with slow payments falling to 55.40% after two quarters of deterioration.
The retail sector also showed improvement, with slow payments dropping to 43.22% due to fewer delays from general merchandise, apparel, and furniture retailers.
However, the manufacturing sector recorded its sixth consecutive quarter of rising payment delays, reaching 39.12%, mainly due to challenges faced by electronics, chemical, and instrument manufacturers.
The wholesale sector also saw an increase in slow payments, rising to 40.50%, particularly among wholesalers of durable and non-durable goods.
Despite the overall improvement, SCCB’s CEO Audrey Chia cautioned that manufacturing and wholesale industries continue to struggle due to prolonged economic challenges. She noted that firms are adopting prudent cash flow management strategies, contributing to an increase in prompt and partial payments.
The findings reflect a mixed economic outlook for Singapore, with some sectors stabilizing while others continue to grapple with financial headwinds.
