Singapore Companies Face Worsening Payment Delays, With Construction Waiting 85.8 Days on Average
Almost half of businesses in the Republic are facing increasingly frequent payment delays, signalling underlying cash flow pressures even as the city-state’s broader economy expands. Some 49 per cent of Singaporean respondents reported that payment delays have grown more frequent over the past year, more than double the 21 per cent who reported an improvement, according to the Coface Apac Payment Survey 2026.
Report Worse Delays
Construction Average
National Average
Experienced a Default
The Findings
The findings were drawn from a local sample of 152 finance professionals in Singapore, out of 2,800 respondents across 10 Asia-Pacific markets.
This deterioration in payment discipline is translating into outright losses for many suppliers. About 57 per cent of surveyed Singapore firms experienced at least one customer default over the past 12 months, significantly outpacing the broader Asia-Pacific average of 45 per cent. For 31 per cent of the firms experiencing defaults, the financial impact wiped out more than 10 per cent of their total receivables.
The worsening credit conditions arrive against a resilient but fractured economic backdrop. Singapore’s economy grew 5.7 per cent year on year in the second quarter of 2026, driven by an artificial intelligence-related boom in electronics and precision engineering. However, Coface chief economist for Asia Pacific Bernard Aw noted that this “two-speed economic growth” has left other sectors behind, with industries like chemicals contracting amid feedstock disruptions and geopolitical uncertainty.
Construction Worst Hit
Payment experiences diverge sharply across these sectors. The construction industry faced the worst liquidity bottlenecks, recording the longest average payment delay at 85.8 days, above the national average of 66.3 days.
Information technology followed at 70.2 days, automotive at 68.1 days, energy at 63 days, agrifood at 60.9 days and retail at 58.8 days. Chemicals recorded 54.3 days, pharmaceuticals 54 days, and transportation and metals both at 47.1 days.
Cultural business practices may be compounding the risks. Almost three-quarters of respondents said longstanding commercial relationships influence their tolerance for late payments, and 84 per cent admitted that relationship considerations can sometimes outweigh financial warning signs. As a result, 65 per cent of Singapore businesses waited until payment delays stretch beyond 60 days before tightening credit controls, compared with just 47 per cent across Asia-Pacific.
The business community remains pessimistic. Over half of respondents expect payment conditions to deteriorate further in the coming year, with retail and chemicals firms registering the most negative outlooks.
Why It Matters Now
The survey results come after liquidity has become one of the largest hurdles left in cross-border payments, with tokenisation touted as a more efficient way for banks to fund transactions. This comes as the industry moves towards round-the-clock settlement.
For suppliers and subcontractors, the combination of longer waits and higher default rates compresses working capital at precisely the moment when input costs remain elevated. That pressure is most acute in construction, where fixed-price contracts signed in earlier years leave little room to absorb either delay or cost escalation.
Frequently Asked Questions
How bad are payment delays in Singapore?
Some 49 per cent of Singaporean respondents reported payment delays have grown more frequent over the past year, more than double the 21 per cent reporting improvement. The national average payment delay is 66.3 days. About 57 per cent of firms experienced at least one customer default in the past 12 months, against an Asia-Pacific average of 45 per cent.
Which sector is worst affected?
Construction, with the longest average payment delay at 85.8 days, well above the national average of 66.3 days. Information technology followed at 70.2 days and automotive at 68.1 days. Transportation and metals recorded the shortest delays at 47.1 days each.
Why are firms slow to act on late payment?
Almost three-quarters of respondents said longstanding commercial relationships influence their tolerance for late payments, and 84 per cent admitted relationship considerations can outweigh financial warning signs. Some 65 per cent waited until delays stretched beyond 60 days before tightening credit controls, against 47 per cent across Asia-Pacific.
Planning renovation or construction works?
Construction firms are waiting 85.8 days on average to be paid, and closures in the sector are up 47 per cent this year. Checking a contractor’s financial standing before you commit is worth more than comparing quotes. Happy to talk it through.