Computer programming, consultancy and related activities leads among industries
The preliminary results of the 2013 Annual Survey of Philippine Business and Industry conducted nationwide showed that a total of 845 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in Information and Communication activities. Computer programming, consultancy and related activities industries lead the sector with 327 (38.7%) establishments. Publishing of books, periodicals and other publishing activities and satellite telecommunications activities followed with 87 (10.3%) and 81 (9.6%) establishments, respectively. Figure 1 shows the percentage distribution of establishment by industry group in 2013.
Most of the establishments are in National Capital Region
By geographic location, the National Capital Region (NCR) had the most number of establishments with 583 or 69.0 percent of the total. Central Visayas placed second with 52 establishments (6.2%) followed by CALABARZON with 37 (4.4%) establishments.
Computer programming, consultancy and related activities generate highest employment
Information and communication section provided employment to some 128,543 workers in 2013, almost all of which were paid workers (99.8%).
Among industry groups, computer programming, consultancy and related activities generated the highest number of employees with 47,532 (37.0%) workers. This was followed by data processing, hosting and related activities; web portals with 20,188 (15.7%) workers. Wireless telecommunications activities ranked third among the industries hiring 14,399 workers (11.2%). Figure 2 shows the distribution of employment by industry group.
Among the regions, NCR was the top employer with 105,042 employees (81.7%). Workers located in Central Visayas and Central Luzon followed with 11,184 (8.7%) and 3,483 (2.7%), respectively.
The section’s average employment stood at 152 employees per establishment. Wireless telecommunications activities registered the highest national average at 600 employees per establishment. Three other industries surpassed the section’s average which composed of wired telecommunications activities; data processing, hosting and related activities; web portals; and television programming and broadcasting activities with 304; 297; and 224 employees per establishment, respectively.
Computer programming, consultancy and related activities pays the highest compensation
Total compensation paid by Information and Communication section amounted to PHP74.7 billion, an equivalent of PHP582,178 average annual compensation.
By industry group, computer programming, consultancy and related activities paid the highest compensation to its employees amounting to PHP27.4 billion or 36.6 percent of the total compensation. Wired telecommunications activities remunerated its employees with PHP13.1 billion or 17.6 percent while workers in wireless telecommunications received payment worth PHP11.0 billion (14.8%). Figure 3 shows the compensation by industry for the sector.
Employees in software publishing earn the highest with PHP1.3 million
Software publishing employees were the highest earners in 2013 with an average annual compensation of PHP1.3 million. Wired telecommunications activities and other information service activities followed next with PHP1.2 million and PHP839,288, respectively. On the other hand, radio broadcasting employees received the lowest annual pay of PHP256,269. Figure 4 shows five leading industries with highest annual compensation in 2013.
By region, NCR-based workers received the highest average annual compensation with PHP653,671 followed by Zamboanga Peninsula-based workers with PHP369,597. Employees from Davao Region came in third with PHP360,347 average annual remuneration.
Wireless telecommunications activities, highest in income and expense
Income generated for the sector in 2013 was estimated at PHP519.2 billion. The top revenue generators were the following: wireless telecommunications activities with PHP207.9 billion (40.0%), wired telecommunications activities with PHP114.1 billion (22.0%), and computer programming, consultancy and related activities with PHP94.2 billion (18.1%).
Most of the income of the sector came from NCR with PHP499.6 billion (96.2%). Central Visayas contributed PHP7.7 billion (1.5%) and Central Luzon shared PHP2.4 billion (0.5%).
Total expense including compensation reached PHP423.2 billion. More than two-fifths of the total was spent by wireless telecommunications activities with PHP173.0 billion (40.9%). Computer programming, consultancy and related activities incurred the second highest cost with PHP85.0 billion (20.1%) followed by wired telecommunications activities with PHP75.4 billion (17.8%).
Regionwise, NCR incurred the highest cost amounting to PHP407.1 billion (96.2%) while Cagayan Valley recorded the least with PHP144.7 million. Figure 5 shows the distribution of income and expense by industry group for the sector in 2013.
Income-expense ratio stands at 1.23
The sector generated an income of PHP1.23 for every peso spent. Among industries, wired telecommunications activities recorded the highest income-expense ratio with PHP1.51 followed by sound recording and music publishing activities and by motion picture, video and television programme activities which both reported PHP1.42 income-expense ratio.
Value added amounts to PHP248.3 billion
Value added was estimated at PHP248.3 billion. The top three industry groups contributed more than three-fourths of the total value added for the sector with their respected shares: wireless telecommunications activities with PHP106.9 billion (43.0%), computer programming, consultancy and related activities followed with PHP45.2 billion (18.2%) and wired telecommunications activities with PHP41.2 billion (16.6%). Figure 6 shows the value added by industry for the sector.
At regional level, NCR reported the highest value added contributing 94.9% of the total or PHP235.7 billion. Central Visayas and Central Luzon followed next with PHP5.2 billion (2.1%) and PHP1.6 billion (0.6%), respectively.
Employees from wireless telecommunications activities, most productive in 2013
Value added per employee, a measure of labor productivity, was estimated at PHP1.9 million per employee. Among industries, wireless telecommunications activities establishments had the highest average of PHP7.4 million followed by wired telecommunications activities and software publishing with PHP3.8 million and PHP3.7 million, respectively.
Change in inventories in 2013 amounts to PHP808.9 million
Change in inventories, defined as the value of ending inventory less the beginning, amounted to PHP808.8 million in 2013. Among the four industries that recorded positive change in inventories, wireless telecommunications activities recorded the highest with PHP1.1 billion. On the other hand, computer programming, consultancy and related activities registered the lowest change in inventories amounting to negative PHP237.2 million.
Gross additions to fixed assets accumulates to PHP90.1 billion
Gross additions to fixed assets in 2013 totaled to PHP90.1 billion with the wireless telecommunications activities recording the highest value of PHP69.9 billion (77.5%). Wired telecommunications activities followed with PHP11.8 billion (13.1%) and television programming and broadcasting activities with PHP2.5 billion (2.8%).
By region, NCR comprised the largest part of gross additions to fixed assets with PHP88.2 billion (97.9%). CALABARZON is in second place with PHP497.6 million (0.6%), followed by Central Visayas with PHP430.1 million (0.5%).
Government grants PHP182.7 million subsidies
Subsidies are special grants received from the government in the form of financial assistance or tax exemption or tax privilege to aid and develop an industry. For 2013, only television programming and broadcasting activities was granted government subsidies amounting to PHP182.7 million.
Sales in E-Commerce reach PHP33.2 million
E-Commerce refers to the selling of products or services over electronic systems. In 2013, sales from E-commerce amounted to PHP33.2 million. Computer programming, consultancy and related activities had the biggest share for the industry amounting to PHP27.9 million.
Of the total E-Commerce, NCR recorded PHP27.9 million which accounted to 87.0 percent. On the other hand, Cordillera Administrative Regiion (CAR) contributed to PHP5.3 million.
This Special Release presents the preliminary results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) for the Information and Communication sector for establishments with total employment of 20 and over.
The 2013 ASPBI is a forerunner of the 2010 ASPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the survey will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2013. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.
To provide establishment respondents ease of accomplishing the 2013 ASPBI questionnaires, the income and expense account in the Financial Statement of establishment was adopted in the design of sectoral 2013 ASPBI questionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.
Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the PSA website and downloading of e-questionnaire and submission thru e-mail.
The conduct of the ASPBI is governed by authority of the following legislative acts and presidential directives:
- Republic Act 10625 know as the Philippine Statistical Act of 2013 dated September 12, 2013 - (Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities). It shall be the policy of the State to effect the necessary and proper changes in the organizational and functional structures of the PSS in order to rationalize and promote efficiency and effectiveness in the delivery of statistical services.
Section 27 of Republic Act No 10625 states that:
"... Respondents of primary data collection activities such as censuses and sample surveys are obliged to give truthful and complete answers to statistical inquiries. The gathering, consolidation and analysis of such data shall likewise be done in the most truthful and credible manner. Any violation of this Act shall result in the imposition of the penalty of one (1) yearimprisonment and a fine of One hundred thousand pesos (P100,000.00). In cases where the respondent fails to give truthfulcomplete answers to such statistical inquiries is a corporation, the above penalty shall be imposed against, such corporation, enterprise or business concerned, shall be imposed a fine ranging from One hundred thousand pesos (P100,000.00) to Five hundred thousand pesos (P500,000.00)..."
Confidenciality of Information
- Republic Act 10625 (Philippine Statistical Act of 2013)
Section 27 of RA 10625 states that:
"... Any person, including parties within the PSA Board and the PSA, who breach the confidentiality of information, whether by carelessness, improper behavior, behavior with malicious intent, and use of confidential information for profit, are considered guilty of an offense and shall be liable to fines as prescribed by the PSA Board which shall not be less than Five thousend pesos (P5,000.00) nor more than Ten thousand pesos (P10,000,00.00) and/or imprisonment of three (3) months but not exceed one (1) year,
- Republic Act 6713 (Code of Conduct and Ethical Standards for Public Officials and employees dated February 20, 1989)
Section 7 of RA 6713 states that:
"... (c) Disclosure and/or misuse of confidential informatiom. Public officials and employees shall not use or divulge confidential or classified information officially known to them by reason of their office and not made available to the public, either: (1) to further their private interest, or give undue advantage of anyone, or (2) to prejudice the public interest..."
Scope and Coverage
The 2013 ASPBI was a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector:
- Corporations and partnerships
- Cooperatives and foundations
- Single establishment with employment of 10 or more
- Single proprietorship with branches
Hence, the 2013 ASPBI covered only the following economic units:
- All establishments with total employment (TE) of 10 or more, and;
- All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).
The initial estimate of the 2013 List of Establishments (LE), the frame used to draw the sample establishments for the 2013 ASPBI, registered a total of 941,000 establishments in operation nationwide in 2013. Out of this number, 72 percent or 678,000 establishments belong to the informal sector and only 28 percent or 263,000 establishments made up the formal sector.
Listed below are the 18 economic sectors within the scope of the 2013 ASPBI classified under the 2009 PSIC.
- Agriculture, Forestry and Fishing (A)
- Mining and Quarrying (B)
- Manufacturing (C)
- Electricity, Gas, Steam, and Air Conditioning Supply (D)
- Water Supply; Sewerage, Waste Management and Remediation Activities (E)
- Construction (F)
- Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, Motorcycles (G)
- Transportation and Storage (H)
- Accommodation and Food service activities (I)
- Information and Communication (J)
- Financial and Insurance Activities (K)
- Real Estate Activities (L)
- Professional, Scientific and Technical Activities (M)
- Administrative and Support Service Activities (N)
- Education (P)
- Human Health and Social Activities (Q)
- Arts, Entertainment and Recreation (R)
- Other Service Activities (S)
Unit of Enumeration
The unit of enumeration for the 2013 ASPBI was the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.
Classification of Establishments
An establishment is categorized by its economic organization (EO), legal organization (LO), industrial classification, employment size and geographic location.
Economic organizations (EO). This refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
- Single establishment (EO=1) is an establishment which has neither branch nor main office. It may have ancillary unit/s, other than main office, located elsewhere.
- Branch only (EO=2) is an establishment which has a separate main office located elsewhere.
- Establishment and Main Office (EO=3) is one where the establishment is located in the same address as the main office and with branch/es elsewhere.
- Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
- Ancillary Unit other than Main Office (EO=5) is a unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides services that support those establishments.
Legal Organization (LO). (EO). This refers to the legal form of the economic entity provides the legal basis for ownership of the establishment. The following are the types of legal organization:
- Single Proprietorship (LO=1) refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. A sole proprietorship must apply for a business name and be registered with the Department of Trade and Industry (DTI).
- Partnership (LO=2) 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.
- Government Corporation (LO=3) also called Government-Owned or Controlled Corporation (GOCC) refers to a corporation organized for private aim, benefit or purpose with the government as the major stockholder, regardless of whether they are stock or non-stock corporations.
- Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
- Stock Corporation (LO=4) refers to an ordinary business corporation organized by private persons, created and operated for the purpose of making a profit which may be distributed in the form of dividends to stockholders on the basis of their invested capital.
- Non Stock, Non-profit Corporation (LO=5) refers to a business corporation which does not issue stock to its members and are created not to profit but for the public good and welfare. Of this character are most of the religious, social, charitable, educational, literary scientific, civic and political organizations and societies.
- Cooperative (LO=6) refers to an organization composed primarily of small producers and/or consumers who voluntarily join together to form a business enterprise which they themselves own, control and patronize.
- Others (LO=7) refer to an organization not classified in any of the above classification. It includes private associations, foundations, Non-Governmental Organizations, or other forms of legal organizations.
Industrial classification The Industrial Classification of an economic unit is determined by the activity from which it derives its major income or revenue. The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.
Size (SZ) of the Unit of Enumeration The size of an economic unit is determined by its total employment (TE) as of specific date. Total employment (TE) refers to the total number of persons who work in or for the establishment/enterprise. This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.
The following are the size codes and corresponding total employment used in the 2013 ASPBI:
Geographic Classification. Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The latest PSGC as of December 31, 2013 was used for the 2013 ASPBI.
Selection of sample establishment for the 2013 ASPBI was done using stratified systematic sampling with 5-digit PSIC serving as industry strata and employment size as the second stratification variable.
Non-Certainty Stratum (strata TE of 20-49 and TE of 50-99)
The estimate of the total of a characteristic for the non-certainty employment strata in TE of 20 and over for an industry domain in each region (geographic domain) is
- s = denotes the non-certainty employment strata in TE of 20 and over.
- p = 1,2,...17 regions (geographic domains)
- xspj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over in for an industry domain in each region.
- j = 1,2,3,..., nspestablishments
- Wspj = weight of the jth establishment in non-certainty employment strata in TE of 20 and over for an industry domain in each region
- Nsp = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
- nsp = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region.
The estimate of the total of a characteristic for the certainty employment stratum in TE of 20 and over in an industry domain in each geographic domain (region) is
- c = denotes the certainty employment stratum in TE of 20 and over
- p = 1,2,..., 17 regions (geographic domains)
- xcpj = value of the jthestablishment in the certainty employment stratum in TE of 20 and over in an industry domain within each region.
- j = 1,2,3,... mcp establishments
- mcp = number of establishments in the certainty employment stratum in TE of 20 and over in an industry domain within each region.
Total Estimate for TE of 20 and Over
The estimate of the total of a characteristic for the industry domain in each region (geopraphic domain) was obtained by aggregating the estimated for all employment strata (non-certainty and certainty) in the same industry domain,
where dp denotes the industry domains in each region
National level estimate of the the characteristic by industry domain were obtained by aggregating separately the estimates for the particular industry domain from all the regions,
Weight Adjusment Factor for Non-Response
To account for non-response in the non-certainty strata, the adjusment factors, and (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as
For the non-certainty employment stratum in TE of 20-49 or 50-99, the adjusted weight is
- Nsp = total number of establishments in the non-certainty employment stratum in TE of 20-49 or 50-99 fon an industry domain within each geographic domain (region)
- n'sp = number of responding establishments in the non-certainty employment stratum in TE of 20-49 or 50-99 for an industry domain within each geographic domain (region)
Field operations of the 2013 ASPBI were scheduled from September to December 2014.
Total response rate for Information and Communication sector with TE of 20 and over was 91.8 percent (901 out of 981 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 29 establishment responded online and none accomplished e-questionnaire. Others convert accomplished questionnaires to portable document format (PDF) and submit through e-mail.
CONCEPTS AND DEFINITIONS OF TERMS
Establishment is an economic unit under a single ownership and control, i.e. under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.
Total employment is the number of persons who worked in for the establishment as of November 15, 2013.
Paid employees are all full-time and part-time employees working in or for the establishment and receiving pay, as well as those working away from the establishment and paid by and under the control of the establishment. Included also are all employees on sick or maternity leave, paid vacation or holiday and on strike. Excluded are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, home workers and workers receiving pure commissions only.
Unpaid workers are working owners who do not receive regular pay, apprentices and learners without regular pay and persons working for at least 1/3 of the working time normal to the establishment without regular pay. Excluded are silent or inactive business partners.
Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.
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.
Income or Revenue includes cash received and receivables for goods/products and by-products sold and services rendered. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.
Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchaser prices including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.
Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis. Valuation is at purchaser price including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.
Intermediate Cost refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity purchased and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.
Valued added is gross output less intermediate input. Gross output for information and communication is the sum of the total income (less rent income from land, delivery charges separately invoiced to customers, interest income, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories of goods for resale; less cost of goods purchased for resale. Intermediate input is equal to the sum of the following expense/cost items: materials and supplies ; fuels, lubricants, oils and greases ; electricity; water; cost of repairs, maintenance and installation work; cost of non-industrial services done by others (less rent expense for land); research and development expense; environmental protection expense; royalty fee; franchise fee; management fee; inventory of materials and supplies, fuels, lubricants, oils and greases (beginning less ending) and other cost/ expense.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Change in total inventories is computed as the total ending inventory less the total beginning inventory.
Inventories refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.
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.
E-Commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system.
Source: Philippine Statistics Authority - National Statistics Office