Coface’s Asia Payment Survey 2025 has highlighted a challenging landscape for businesses across the Asia Pacific, with payment behaviours expected to deteriorate amidst economic uncertainty. Conducted among 2,400 companies across nine markets and 13 sectors, the survey reveals that whilst Singapore’s economy showed resilience in 2024, the region faces significant hurdles due to tight liquidity conditions and intense market competition.
The survey found that payment terms in Asia Pacific increased slightly from 64 days in 2023 to 65 days in 2024, though still below the five-year average of 69 days. Notably, Singapore, Australia, and Taiwan reduced their payment terms, reflecting a cautious approach to cash preservation. Despite these tighter terms, the proportion of companies reporting overdues fell to a record low of 49%, down from 60% in 2023.
However, the report also noted a concerning rise in Ultra Long Payment Delays (ULPDs) exceeding 180 days, affecting 40% of companies, up from 23% in 2023. This trend indicates a sharp deterioration in credit risk, with India, Thailand, and China experiencing the most significant increases. Bernard Aw, Chief Economist at Coface, explained that “80% of these delays were irrecoverable,” underscoring the severity of the issue.
Looking ahead, 57% of respondents anticipate worsening payment behaviours, driven by slower demand, competitive pressures, and rising costs. Despite these challenges, a majority remain hopeful for improvement, particularly in India. The survey, conducted between December 2024 and March 2025, provides a comprehensive view of the evolving credit management practices in the region.
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