Payment delays among firms have risen again, with retail and services posting the highest increases of all sectors.

Slow payments, defined as those made at least 30 days past the due date, rose from 42.58 per cent in first quarter - near a three-year low - to 45.78 per cent in the second. Year on year, slow payments were up 8.68 percentage points to 45.78 per cent in the second quarter, the Singapore Commercial Credit Bureau (SCCB) said yesterday.

"The deterioration in payment performance should come as no surprise as the economy came to a virtual standstill for most of the second quarter," said SCCB chief executive Audrey Chia. She added that it is still premature to determine if there will be an improvement in payment performance in the near term even with the gradual resumption of economic activity.

"The cash-flow situation for most firms is likely to remain tight. Hence, we would caution firms to continue exercising vigilance and prudence in their credit policies."

Retail and services recorded the highest quarterly increases in payment delays of the five sectors studied by the SCCB. Construction, manufacturing and wholesale trade were the others looked at.

It was also the retail and service industries' highest year-on-year jump in nine years.

Slow payments in retail rose to 51.22 per cent in the second quarter, up 9.72 percentage points from the first. The increase was a marked 15.03 percentage points year on year. The delays mainly arose among retailers of general merchandise, followed by food and beverage and building material and garden supplies.

Slow payments in the service sector were up 5.03 percentage points quarter on quarter to 48.35 per cent and ahead 12.58 percentage points year on year. The delays were largely faced by the engineering services sub-sector, followed by education, hotels and accommodation.

THE BUSINESS TIMES