MALAYSIAN businesses are showing modest improvements in payment discipline, but the gap between large corporations and small and medium enterprises (SMEs) is widening — raising concerns about cashflow resilience, especially in cost-sensitive sectors.
According to Experian Malaysia’s State of Credit 2025 report released last week, average payment delays across all enterprises improved slightly, falling from 64 days to 61 days over four years.
SMEs recorded a five-day gain, from 69 days in 2022 to 64 days in early 2025, while corporates held steady at an average of 58 days.
Despite the national uptick, “smaller enterprises continue to face disproportionate pressure”, said Experian Information Services Malaysia CEO Dawn Lai.
“While we’re seeing signs of improved payment behaviour, many SMEs remain highly exposed to cashflow gaps.”
The findings, based on Experian’s iDTC (Industry Debts Turned Cash) data, show the widest current payment gaps between corporates and SMEs in transport/ logistics (26 days), hospitality (13 days) and wholesale (10 days).
In the transport and logistics sector, payment delays worsened to 76 days for both corporates and SMEs, reflecting the impact of subsidy reforms, higher fuel costs and continued supply chain friction. Food and beverage (F&B) and hospitality SMEs, while benefitting from tourism recovery, still face intense cost pressures and tight liquidity.
“Without early credit insights and stronger financial controls, these pressures could escalate further in 2025 with businesses seeing delayed expansion plans, tighter supplier terms and even higher borrowing costs,” Lai added.
On the policy front, shifts in global trade — including rising tariffs in key export markets — could further strain liquidity in export-oriented sectors, reversing recent gains in payment timelines.
Source: https://themalaysianreserve.com/2025/05/26/smes-facing-widening-cashflow-gap-despite-payment-gains/