Payment performance improves slightly in Q1

Three out of five sectors reported higher slow payments.

Singapore’s overall payment performance improved marginally for the second consecutive quarter in Q1 2025, according to data from the Singapore Commercial Credit Bureau (SCCB), a unit of Credit Bureau Asia. However, the improvement was modest, with rising payment delays recorded in key sectors such as construction, manufacturing and wholesale trade.

Prompt payments rose slightly to 41.18%, up 0.03 percentage points from the previous quarter and 0.11 percentage points year-on-year. Slow payments dipped by just 0.01 percentage points to 44.04%, whilst partial payments fell by 0.02 percentage points to 14.78%.

Three out of five sectors reported higher slow payments this quarter, up from just one in Q4 2024.

Delays in the construction sector increased for the fourth straight quarter. Slow payments rose to 55.32%, up 0.02 percentage points. Special trade contractors recorded the highest delays at 55.45%.

Manufacturers saw worsening payment performance, with slow payments rising to 39.15%. Electronics manufacturers posted the largest increase, up 2.31 percentage points to 46.86%.

The retail sector improved, with slow payments falling by 0.10 percentage points to 43.05%. Retailers of general merchandise and furniture posted the largest drops in delays.

Payment performance in the services sector also improved slightly. Slow payments fell to 42.50%, down 0.05 percentage points. Business services saw the biggest drop, down 2.23 percentage points.

Slow payments in wholesale trade rose to 40.20%, up 0.05 percentage points. Both durable and non-durable goods wholesalers posted higher delays.

“Despite the continued uptrend in payment performance for Q1 2025, the improvements are considered marginal with a slight dip in partial payments being made by firms over the past quarter," said Audrey Chia, SCCB’s Chief Executive Officer.

"Given the economic uncertainties by the recent spate of global events, firms have to continue to exercise greater vigilance in ensuring healthy cashflows," she added.

SCCB’s data is based on over 2.4 million payment transactions contributed by local firms.