2013 Annual Survey of Philippine Business and Industry (ASPBI) - Information and Communication Sector : Final Results

Reference Number: 

2016-148

Release Date: 

Tuesday, December 13, 2016

Other telecommunications activities leads among industries

The final results of the 2013 Annual Survey of Philippine Business and Industry showed that a total of 3,274 establishments were engaged in information and communication activities.  Establishments with Total Employment (TE) of less than 20 comprised 2,387 (72.9%) of the total establishments while the remaining 887 (27.1%) were establishments with TE of 20 and over.

Other telecommunications activities comprised about 1,246 (38.1%) of the total number of establishments.  This was followed by establishments engaged in computer programming, consultancy and related activities with 669 (20.4%).  Ranked third were establishments engaged in satellite telecommunications activities with 324 (9.9%).  Figure 1 shows the percentage distribution of establishments by industry group in 2013.

 

Computer programming, consultancy and related activities generates highest employment

Information and communication sector provided employment to some 143,747 workers in 2013, almost all of which were paid workers (99.3%). Establishments with TE of 20 and over employed 130,632 or 90.9 percent of the total employment while establishments with TE of less than 20 shared 13,115 employees or 9.1 percent of the total.

Among industry groups, computer programming, consultancy and related activities generated the highest number of employees with 51,897 workers (36.1%).  This was followed by data processing, hosting and related activities; web portals with 20,438 workers (14.2%).  Wireless telecommunications activities ranked third among the industries hiring 14,585 workers (10.1%).

Figure 2 shows the distribution of employment by industry group.

 

Computer programming, consultancy and related activities pays the highest compensation

Total compensation paid by the sector in 2013 amounted to PHP78.2 billion.  About 96.7 percent of the total was paid to establishments with TE of 20 and over amounting to PHP75.6 billion while establishments with TE of less than 20 paid their employees with PHP2.6 billion or 3.3 percent of the total.

By industry group, computer programming, consultancy and related activities paid the highest compensation to its employees amounting to PHP28.7 billion or 36.7 percent of the total. Wired telecommunications activities remunerated its employees with PHP13.3 billion or 17.0 percent to total compensation while workers in wireless telecommunications received payment worth PHP11.2 billion (14.3%).  Figure 3 shows the compensation by industry for the sector.

 

Employees in software publishing earn the highest with PHP1.3 million

Average annual compensation for the sector in 2013 amounted to PHP548,158.  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 PHP848,530, respectively.  On the other hand, radio broadcasting employees received the lowest annual pay of PHP226,800.  Figure 4 shows the five leading industries with highest annual compensation in 2013.

 

Wireless telecommunications activities highest in income and expense

Income generated for the sector in 2013 was estimated at PHP542.1 billion.  Establishments with TE of 20 and over shared the largest part of the income amounting to PHP525.5 billion or 97.0 percent of the total.  Furthermore, establishments with TE of less than 20 contributed PHP16.5 billion or 3.0 percent of the total income.

The top revenue generators were the following: wireless telecommunications activities with PHP208.5 billion (38.5%), wired telecommunications activities with PHP115.3 billion (21.3%), and computer programming, consultancy and related activities with PHP103.1 billion (19.0%).

Total expense including compensation reached PHP442.5 billion.  Establishments with TE of 20 and over spent the largest with PHP427.9 billion or 96.7 percent of the total expense. On the other hand, establishments with TE of less than 20 disbursed PHP14.6 billion or 3.3 percent of the total.

About two-fifths of the total was spent by wireless telecommunications activities with PHP173.8 billion (39.3%).  Computer programming, consultancy and related activities incurred the second highest cost with PHP92.4 billion (20.9%) followed by wired telecommunications activities with PHP76.3 billion (17.2%).

 

Income-expense ratio stands at 1.23

The sector generated an income of 1.23 for every peso spent.  Among industries, wired telecommunications activities recorded the highest income-expense ratio surpassing the national average with 1.51 income-expense ratio.  This was followed by motion picture, video and television programme activities with 1.34.  In third place, other telecommunications activities reported 1.22 peso income for every peso spent.

 

Value added amounts to PHP257.9 billion

Value added was estimated at PHP257.9 billion.  The top three industry groups contributed more than three-fourths of the total value added for the sector with their respective shares as follows: wireless telecommunications activities, PHP107.2 billion (41.6%); computer programming, consultancy and related activities, PHP48.7 billion (18.9%); and wired telecommunications activities, PHP41.9 billion (16.3%).  Figure 6 shows the value added by industry for the sector.

 

Employees from wireless telecommunications activities most productive in 2013

Value added per employee, a measure of labor productivity, was estimated at PHP1.8 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 PHP3.7 million and PHP3.5 million, respectively.

 

Change in inventories amount to PHP771.7 million

Change in inventories, defined as the value of ending inventory less the beginning, amounted to PHP771.7 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 PHP230.8 million.

 

Gross additions to fixed assets accumulates to PHP90.7 billion

Gross additions to fixed assets in 2013 totaled to PHP90.7 billion with the wireless telecommunications activities recording the highest value of PHP70.0 billion (77.2%). Wired telecommunications activities followed with PHP11.8 billion (13.0%) and television programming and broadcasting activities with PHP2.6 billion (2.9%).

 

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 reaches PHP3.1 billion

E-Commerce refers to the selling of products or services over electronic systems. In 2013, sales from e-commerce amounted to PHP3.1 billion. Computer programming, consultancy and related activities had the biggest share for the industry amounting to PHP1.5 billion or 49.4 percent of the total. It was followed by wired telecommunications activities with PHP1.0 billion or 33.6 percent and by publishing of books, periodicals and other publishing activities with PHP301.9 million or 9.9 percent of the total sales in e-commerce.

 


 

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) for the Information and communication sector for all employment sizes in the formal sector of the economy.

The 2013 ASPBI is 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 Statemenof 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.

Legal Authority

The conduct of the ASPBI is governed by authority of the following legislative acts:

  • 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)..."

  •  Republic Act No. 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, subject to the degree of breech of information..."

  • 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: 

  1.  Corporations and partnerships
  2.  Cooperatives and foundations
  3.  Single establishment with employment of 10 or more
  4.  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 LE shows about 941,000 establishments in operation in the country for the year.  About 263,000 establishments (28% of total establishments) belong to the "Formal Sector" of which 229,000 (87%) comprise the establishment frame.

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 Work Activities (Q)
  • Arts, Entertainment and Recreation (R)
  • Other Service Activities (S)

Sampling Design

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 Organization (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).   This refers to the legal form of the economic entity that 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.
  • 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.

Sampling Design

Selection of sample establishment for the 2013 ASPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.

Estimation Procedure

For Establishments with TE of Less Than 20

1. Non-Certainty Stratum

    The estimate of the total of a characteristic  for the non-certainty employment stratum TE less than 20 in the sth industry domain was

 

where:

         s   = denotes the non-certainty employment strata in TE of less than 20

         Xsj = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain

         j    = 1,2,3..., ns establishments

         Xsj = weight of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain

 

 

         Ns = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain

         ns  = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain

2. Certainty Stratum

    The total of a characteristic  for the certainty employment stratum in the Cth industry domain was

 

where:

        c    = denotes the certainty employment strata in TE of less than 20 in the cth industry

        xcj  = value of the jth establishment in the certainty employment strata in TE of less than 20 in the cth industry domain

        j     = 1,2,3,..., mc establishments 

        mc  = number of establishments in the certainty employment strata in TE of less than 20 in the cth industry domain

 

1. Total Estimate for TE of Less Than 20

    For all sections except B and C, national level estimates of the total of a characteristic  for the industry domain was obtain by                  aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

 

     where  d  denotes the industry domain.

For Establishments with TE of 20 and Over

1.   Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99 for Sections G, H, I, J, K, L, M, N, P, Q, R and S.  

      The estimate of the total of a characteristic for the non-certainty employment strata in TE of 20 and over for selected industry                    domain in each region was as

where:

        s     = denotes the non-certainty employment strata in TE 20 and over

        p     = 1,2,...,17 regions geographic domains

        xspj  = value of the jth establishment in the certainty employment strata in TE of 20 and over for an industry domain in each region

        j      = 1,2,3..., nsp establishments

        Wspj = weight of the jth establishment in the 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

2.   Certainty Stratum  

      The the total of a characteristic for the certainty employment stratum in TE of 20 and over in an industry domain in each region was

 

where:

           = denotes the non-certainty employment strata in TE of 20 and over

        p    = 1,2,...17, regions (geographic domains)

        xcpj = value of the jth establishment in the certainty employment strata in TE of 20 and over in an industry domain within each region

            = 1,2,3..., mcp establishment  

        mcp number of establishments in the certainty strata in TE of 20 and over in an industry domain in each region

 

3.   Total Estimate for TE of 20 and Over  

      The estimate of the total of a characteristic for the industry domain in each (geographic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

where   dp  denotes the industry domains in each region.

National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates (Xdp)  for the particular industry domain from all the regions.

Weight Adjustment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjustment factor (n/n’) was multiplied with the sampling weight (W) of each of the sampling unit. The sampling weight, defined as N/n, was recomputed as

 

Thus, the adjusted weight (W’sj) for employment stratum in TE 1-9 or TE 10-19 was

where:

        Ns  = total number of establisments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain

        n's  = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain

For the non-certainty employment stratum for the selected industry domain with TE 20-99, the adjusted weight (W'spj) was

 

where:

        Nsp = total number of establisments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)

        n'sp = number of responding establishments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)

 

Questionaire Design

The questionnaire design is basically the same as that of the 2012 Census of Philippine Business and Industry.  However, changes were made in the disaggregation of data items for fixed assets in support to the requirements of the 2008 Systems of National Accounts with respect to the generation of fixed capital formation.

The sample establishments responded also to the survey through the use of Web-based version of the 2013 ASPBI questionnaires which was accomplished online at the PSA website. Likewise, an e-questionnaire was also downloaded and submitted thru e-mail.

Response Rate

Field operations of the 2013 ASPBI were scheduled from September to December 2014.

Total response rate for Information and communication sector was 92.4 percent (4,510 out of 4,881 establishments).  This include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 94 establishments 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 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 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.

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.

Value Added is gross output less intermediate input.  Gross output for the information and communication sector is the sum of the total revenue (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories.  Intermediate input is equal to the sum of the following cost items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; payouts and other cost.

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 of 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 all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.

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.

  

 

 

 

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