However, SCCB said the improved payment performance in the first quarter does not indicate a future upward trend as local payment performance has been volatile and unpredictable over the past twelve months.

Ms. Audrey Chia, D&B Singapore Deputy Chief Executive Officer said that while the fall in payment delays is no doubt encouraging, firms have to be mindful of the continued need for due diligence before extending credit terms to their business partners.

"At a time of rising business costs, the likelihood of payment delinquency will also be higher," she said.

paullim@sph.com.sg