Slow payments rise for the first time in six quarters in Q4 2024

Year-on-year, four out of five industries experienced an increase in slow payments.

Slow payments rose for the first time in six quarters since Q2 2023 in Q4 2024, the Singapore Commercial Credit Bureau (SCCB) reported.

According to the bureau, slow payments slightly increased from 44.0% in Q3 2024 to 44.05% in Q4 2024, and on a year-on-year (YoY) basis, dropped from 44.15% in Q4 2023 to 44.05% in Q4 2024.

Meanwhile, prompt payments deteriorated slightly, decreasing0.05 percentage points (pp) quarter-on-quarter (QoQ) from 41.20% in Q3 2024 to 41.15% in Q4 2024. On a YoY basis, it rose by 0.10 pp from 41.05% in Q4 2023 to 41.15% in Q4 2024.

In addition, partial payments remained unchanged at 14.80% on a QoQ and YoY basis in Q4 2024.

“The increase in slow payments in Q4 2024 was primarily driven by the rise in payment delays within the services sector. However, local companies are still in a better position compared to a year ago,” Audrey Chia, CEO of the SCCB said.

“The average payment delays have decreased after two consecutive years of increases in 2024. Moving into 2025, firms should continue to exercise prudence in cash flow management in the months ahead,” she added.

Across sectors, construction recorded an increase for the third consecutive quarter in Q4 2024, rising by 0.4 pp from 55.26% in Q3 2024 to 55.30% in Q4 2024.

Meanwhile, the manufacturing sector showed improvement, following two consecutive quarters of increases, largely due to a fall in payment delays by manufacturers of electronics, instruments, and chemicals.

On the flip side, retailers experienced an increase in payment delays driven by segments including general merchandise, fashion apparel, and food and beverages.

For the services sector, slow payments deteriorated slightly in Q4 2024 after six consecutive quarters of improvement mainly due to increased payment delays in consumer services, educational services, and recreation.

In addition, payment delays in the wholesale trade sector rose marginally in Q4 2024, mainly attributed to the increases in slow payments by wholesalers of both durable and non-durable goods.

Payment delays in the wholesale trade sector rose slightly in Q4 2024, driven by a rise in slow payments in both durable and non-durable goods segments.