The Singapore Federation of Industry and Commerce has set up a working committee to formulate a code of conduct for timely payment

The Federation of Industry and Commerce and Industry of Singapore (SBF) announced the establishment of a working committee to develop the Code of Conduct for Timely Payment (hereinafter referred to as the Code) aimed at improving payment habits within Singapore's business ecosystem.

The chairman of this working committee is Hong Yu, chairman of the Singapore Chamber of Small and Medium Enterprises (ASME) and co-chair of the SBF SME Committee (SBF SME Committee). The Working Committee brings together representatives from the public and private sectors, including key suppliers and buyers of goods and services.

The Singapore Federation of Industry and Commerce and Industry Association pointed out in a release on Friday (February 28) that the formulation of the “Guidelines” is to establish a framework that promotes fair and timely payments between buyers and suppliers. It will provide guidelines for responsible payment behaviors to ensure on-time payments and promote trust and cooperation across the business ecosystem.

“The guidelines will be voluntarily adopted to encourage timely payments and clear communication of payment terms by creating a fair, transparent and efficient payment culture, thereby reducing disputes, improving cash flow management and promoting long-term business relationships,” it said.

The Working Committee is inviting companies to provide feedback and opinions to formulate draft guidelines with a view to completing the formulation of guidelines in the fourth quarter of this year. It will draw on international best practices.