Number of Establishments

According to the final results of the 2009 Annual Survey of Philippine Business and Industry (ASPBI), a total of 15,118 establishments were engaged in Real Estate, Renting and Business Activities.

Less than half of establishments were engaged in Business activities, not elsewhere classified (n.e.c.) comprising 6,452 or 42.7 percent of the total. Legal; accounting, bookkeeping, auditing and tax consultancy activities; market research and public opinion polling; and business and management consultancy activities ranked far second with 17.3 percent and Real estate activities with own or leased property, third with 10.7 percent. On the other hand, Research and experimental development in social sciences recorded the lowest number (0.1%). Figure 1 shows the percent distribution for all real estate, renting and business activities establishments by industry group.

Employment

The sector employed a total of 698,835 workers in 2009. Of the total, almost all (99%) were paid employees and the rest were working owners or unpaid workers.

Being the top in number of establishments, Business activities, n.e.c. likewise employed the highest number of workers with almost three-fourths (74.4%) of the total. Legal; accounting, bookkeeping, auditing and tax consultancy activities; market research and public opinion polling; and business and management consultancy activities; and Software consultancy and supply followed next with 6.3 percent and 3.8 percent, respectively. On the other hand, Renting of transport equipment recorded the least with less than one percent. Figure 2 shows the employment for all real estate, renting and business activities establishments by industry group.

Compensation

In 2009, the sector paid a total compensation of PHP160.3 billion, equivalent to an average annual compensation of PHP231,872 per paid employee. About 93.1 percent of the total was allotted for gross salaries and wages and the remaining 6.9 percent, for the combined employer's contribution to SSS/GSIS and the like (5.3%), and separation, retirement, terminal pay, gratuities and others (1.6%).

Business activities, n.e.c. paid the highest compensation of PHP98.6 billion which is more than three-fifths (61.5%) of the total. Legal; accounting, bookkeeping, auditing and tax consultancy activities; market research and public opinion polling; and business and management consultancy activities placed second with PHP16.9 billion or 10.5 percent. Software consultancy and supply ranked third with PHP14.2 billion or 8.9 percent. Renting of transport equipment recorded the lowest amount of PHP36.3 million (0.02%).

Workers in Research and experimental development services, n.e.c. were the highest-paid employees receiving an average of PHP725,769 per annum. Hardware consultancy and Software consultancy and supply followed next with PHP592,935 and PHP532,208, respectively. On the contrary, those employed in Renting of personal and household goods received the lowest annual pay of PHP80,829. Figure 3 shows the top five industries in average annual compensation for all Real Estate, Renting and Business Activities establishments.

Revenue

Gross revenue realized by the sector reached PHP636.3 billion in 2009. Real estate activities with own or leased property and Business activities, n.e.c. contributed the biggest share with PHP218.7 billion (34.4%) and PHP216.6 billion (34.0%), respectively. On the other hand, Renting of transport equipment shared the least with PHP531.1 million (0.1%).

Cost

Total costs (excluding compensation paid to employees) amounted to PHP330.8 billion in 2009. Being the major contributors in revenue, Real estate activities with own or leased property and Business activities, n.e.c. also had the largest proportion in cost with PHP148.9 billion (45.0%) and PHP84.5 billion (25.6%), respectively. On the other hand, Research and experimental development services, n.e.c. incurred the lowest cost of PHP228 million (0.1%). Figure 4 shows the top five industries in revenue and cost for all real estate, renting and business activities establishments.

Value Added

Value added derived by Real Estate, Renting and Business Activities sector totaled to PHP321.6 billion in 2009.

Business activities, n.e.c. registered the highest value added with PHP141.6 billion (44.0%) while Research and experimental development in social sciences recorded the least with PHP99.3 million (0.03%).

Labor Productivity

Value added per worker, a measure of labor productivity, was estimated at PHP460,140. Real estate activities on a fee or contract basis led the sector with PHP3.7 million. Real estate activities with own or leased property ranked second with PHP2.3 million and Database activities and online distribution of electronic content, third with PHP2.2 million. On the other hand, Research and experimental development in social sciences recorded the lowest with PHP152,242. Figure 5 shows the top five industries in value added per worker for all real estate, renting and business activities establishments.

Gross Additions to Tangible Fixed Assets

Gross addition to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP24.9 billion in 2009.

Real estate activities with own or leased property and Business activities, n.e.c. acquired the biggest gross addition to tangible fixed assets with PHP10.8 billion and PHP8.3 billion, respectively. On the other hand, Renting of transport equipment had no addition to tangible fixed assets.

Change in Inventories

Total change in inventories (ending less beginning inventory) resulted to a negative value of PHP1.4 billion in 2009. Likewise, Real estate activities on a fee or contract basis, Renting of other machinery and equipment, Hardware consultancy, Database activities and online distribution of electronic content, Research and experimental development in natural sciences, and Legal; accounting, bookkeeping, auditing and tax consultancy activities; market research and public opinion polling; and business and management consultancy activities recorded negative values of change in inventories. All other industry groups reported positive values.

Subsidies

Total subsidies received from the government for this sector amounted to PHP1.1 billion in 2009.

Seven industry groups received subsidies from the government. Business activities, n.e.c. and Real estate activities with own or leased property got the highest amount with PHP621.8 million (59.1%) and PHP394.4 million (37.5%), respectively. Eleven industry groups did not receive any subsidy from the government.

TECHNICAL NOTES

Introduction

The 2009 Annual Survey of Philippine Business and Industry (ASPBI), conducted in 2010 with 2009 as reference year, is one of the continuing activities of the National Statistics Office. It will be a source of benchmark levels on the structure and trends of economic activities in the country for the year 2009. Particularly, the data from ASPBI will be used in constructing national and regional income accounts in the country, determining and comparing regional economic structures, and formulating plans and policies of the government in the attainment of economic goals.

The conduct of the ASPBI is governed by legislative acts and presidential directives, specifically Commonwealth Act No. 591 which was approved on August 19,1940.

Scope and coverage

The 2009 ASPBI covered establishments engaged in 14 economic sectors classified under the Amended 1994 Philippine Standard Industrial classification (PSIC) namely:

• A - Agriculture, Hunting and Forestry
• B - Fishing
• C - Mining and Quarrying
• D - Manufacturing
• E - Electricity, Gas and Water Supply
• F - Construction
• G - Wholesale and Retail Trade, Repair and Maintenance of Motor Vehicles, Motorcycles, and Personal and Household Goods
• H - Hotels and Restaurants
• I - Transportation, Storage and Communications
• J - Financial Intermediation
• K - Real Estate, Renting and Business Activities
• M - Private Education
• N - Health and Social Work
• O - Other Community, Social and Personal Service Activities

The scope of the ASPBI was confined to the "formal sector" only consisting of the following:

• Corporations and partnership
• Cooperatives and foundations
• Single proprietorships with employment of 10 or more
• Single proprietorships with branches

Like all other establishment surveys conducted by the NSO, the 2009 ASPBI used establishment as the unit of enumeration. It is defined as "an economic unit under a single ownership or control, i.e. under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location."

Classification of Establishments

Before the actual selection of samples, the establishments listed in the frame were classified based on economic organization (EO), legal organization (LO), industrial classification, employment size and geographic location.

Economic organization refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:

• Single establishment is an establishment which has neither branch nor main office
• Branch only is an establishment which has a separate main office located elsewhere
• Establishment and main office, both located in the same address and with branches elsewhere
• Main office only is the unit which controls, supervises and directs one or more establishments of an enterprise
• Ancillary unit other than main office is the unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provide goods or services that support but do not become part of the output of those establishments

The legal organization provides the legal basis for ownership of the establishment. The following are the types of legal organization:

• Single Proprietorship refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. The establishment name is that of a person, or it has words such as Owner, Proprietor or Operator.
• Partnership refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves. The establishment name includes words such as Owners, Partners, Limited or LTD., Associates or ASSOCS.
• Government Corporation is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government. The establishment name included words such as Corporation or CORP., INCORPORATED or INC.
• Private Corporation is a corporation organized by private persons. The establishment name includes words such Corporation or Corp, Incorporated or INC.
• Cooperative - the establishment name includes words such as Cooperative or COOP

The industrial classification of an economic unit is determined by the activity from which it derives its major income or revenue. The amended 1994 PSIC is utilized to classify units according to their economic activities.

The amended 1994 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major division, is denoted by the characters A to Q. The first two numeric digits represent the division; the first three numeric digits, the group; the first four digits, the class; and the 5 digits, the sub-class.

The size of the establishment is determined by its total employment (TE). The following are the employment size classification used in the 2009 ASPBI:

The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 30, 2006 which contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines.

The geographic domains of the 2009 ASPBI for establishments with TE of 20 and over are the 17 administrative regions while the whole country serves as the geographic domain for establishments with TE of less than 20.

Hence, the samples of the 2009 ASPBI with TE of 20 and over shall provide data for 17 administrative regions. For samples with TE of less than 20, the data that will be presented is limited only at the national level.

Response Rate

A total of 1,286 or 93.1 percent of sample establishments responded. These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

CONCEPTS AND DEFINITIONS OF TERMS

Economic activity or business is the activity of the establishment as classified under the amended 1994 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.

Total Employment is the number of persons who worked in or for this establishment as of November 15, 2009.

Paid employees are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, workers receiving pure commissions only, and workers on indefinite leave.

Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee's contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay, and other benefits.

Revenue is the value of goods, products/by-products sold and/or services rendered to others whether paid in cash or is considered receivable by the establishment. Valuation of products/by products sold should be in producer's price (ex-establishment), net of discounts and allowances, including duties and charges but excluding subsidies. It also include goods transferred and/or services rendered to other establishment belonging to the same enterprise as the said establishment which should be treated as sales or as if sold to a customer; and revenue from products on a contractual basis from materials supplied by the establishment.

Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at purchaser price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.

Value added is gross output less intermediate costs.

Gross output (for Real estate activities with own or leased property) is equal to the sum of total revenue (less interest income, dividend income, rent income from land, royalty income and franchise income), capital expenditures of fixed assets produced on own account, and change in inventory of real estate for sale; less cost of real estate purchased for sale.

Gross output (for Real estate activities on a fee or contract basis, Renting of machinery and equipment without operator; personal and household goods, Computer and related activities, Research and development and Miscellaneous business activities) is equal to the sum of total revenue (less interest income, dividend income, rent income from land, royalty income and franchise income) and capital expenditures of fixed assets produced on own account.

Intermediate costs is equal to the sum of the following cost items: materials and supplies ; fuels, lubricants, oils and greases ; electricity and water ; cost of industrial services done by others; cost of non-industrial services done by others(less rent expense for land);research and experimental development expense; environmental protection expense; royalty fee; franchise fee, inventory of materials and supplies, fuels, lubricants, oils and greases (beginning less ending) and other cost.

Tangible Fixed assets are physical assets expected to have productive life of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, other structures and land improvements, transport equipment, fixtures, machinery, tool, furniture, office equipment and other fixed assets.

Book value of tangible fixed assets is the initial value or acquisition cost of fixed assets less the accumulated depreciation.

Gross addition to fixed assets is the sum of costs of new and used fixed assets acquired during the year, cost of alteration and improvements done by others and cost of fixed assets produced by the establishment less the value of sales of fixed assets during the year.

Inventories refer to the stocks of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchaser's price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.

Change in Inventories is equivalent to the total value of inventories at the end of the year less the value at the beginning of the year.

Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry or production and to protect it against competition.

Source:   National Statistics Office
                 Manila, Philippines