Payment discipline among Singapore businesses is deteriorating, with 49% of firms reporting more frequent payment delays over the past year, according to the Coface APAC Payment Survey 2026. This figure is more than double the 21% of firms that noted an improvement. Additionally, 42% of businesses experienced an increase in the severity of delays, compared to 23% that reported improvements.
The survey highlights a broader issue in how businesses identify financial stress, with only 11% of firms treating repeated 30-day delays as a risk signal. Instead, 65% wait until delays exceed 60 days before tightening payment terms, compared to 47% across the Asia Pacific (APAC) region. This suggests a need for earlier risk detection and data-driven credit management strategies.
Customer defaults are also more common in Singapore, with 57% of firms experiencing at least one default, compared to 45% across APAC. The construction sector faces the longest payment delays, averaging 85 days, significantly above the national average of 66.3 days.
Bernard Aw, Chief Economist for Asia Pacific at Coface, noted, “With conditions varying considerably across sectors, businesses should continue to monitor counterparties closely and protect their cash flow.” Grishma Kewada, Chief Executive of Coface Singapore, added, “Businesses that combine financial information with early indicators of payment behaviour are better positioned to identify emerging risks.”
As 52% of firms expect payment conditions to worsen, early identification and timely action are crucial to protecting cash flow and limiting potential losses.
