More Singapore companies delay payments in second quarter

Only 47.38 percent of the payments by companies in Singapore were made on time in the second quarter, down from 51.92 percent in the previous quarter, Channel NewsAsia reported on Tuesday.

This was mainly due to gloomy economic growth, said the report, citing a survey by D&B Singapore, a commercial information provider in the country.

The study monitored over 1.5 million transactions by companies through the Singapore Commercial Credit Bureau (SCCB), the report said.

According to the study, the proportion of slow payments rose to 41.1 percent in the second quarter from 37.88 percent in the first three months. Partial payments also increased from 10.2 percent to 11.52 percent.

All five industries monitored in the study including construction, manufacturing, retail, services and wholesale recorded an increase in payment delays in the second quarter.

Audrey Chia, D&B Singapore CEO, said "The downward trend in payment performance clearly reflects how slower economic growth last quarter has impacted the ability of firms in meeting their debt obligations."

However, Chia also noted that delay in payment is "the most viable option" for firms struggling with the lackluster economy.

"As global uncertainties continue to prevail, firms will have to exercise greater flexibility in adapting their cashflows and credit management policies according to volatilities of the macroeconomics environment. Partial payments may be the most viable option for cash-strapped firms," she said.