Global Manufacturers Production Report
Within the period of three years, the manufacturing sector finally received the merit of being the most delinquent debtor here in Singapore. This is only for the first quarter of the year, but who knows what will happen in the second quarter.
Based on the data provided by the Singapore Commercial Credit Bureau (SCCB), the highest percentage of slow payments came from the manufacturing sector. In the last quarter of 2014, the manufacturing sector’s slow payment contributed to 41.37 percent but it rose to 53.06 percent in the first quarter of this year. This goes to show that slow payment increased to 11.69 points from the last quarter.
Who are slow payers? Here’s an idea:
- Petroleum and Coal Products: The petroleum and coal products listed as one of the slowest payers at 59.51%.
- Primary metals: The primary metals sector listed as the second slowest payers at 59.09%.
- Transportation equipment: The transportation equipment sector listed as the third slowest payers at 58.30%.
Now, the construction sector has been surpassed by the manufacturing sectors as the slowest payers. The reason for the slow payments is the tightening of electronics. In fact, the electronics sub-sector listed an increase of about eleven percent of delayed payments.
What does this tell us? The last quarter was difficult for the manufacturing sector but it does not mean that the businesses are not doing good. Whatever the constrains manufacturing sectors experience, for sure they can get through it all and emerge better. The important thing here is the sector is doing its best to keep up with payments. The slow pace is just temporary.
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