TABLE A Comparative Summary Statistics for All Information  and  Communication Establishments: Philippines, 2017 and 2016

Computer programming, consultancy and related activities industry posts the highest in terms of number of establishments

The final results of the Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 2,739 establishments in the formal sector of the economy were engaged in information and communication activities in 2017. This number represents a decrease of 40.4 percent from the 4,598 establishments reported in 2016.

Among industries, computer programming, consultancy and related activities recorded the highest share of 26.0 percent to the total number of establishments for the sector. Other telecommunications activities followed with 25.2 percent and radio broadcasting with 13.4 percent.

Figure 1 shows the percentage distribution of all information and communication establishments by industry group in 2017.

Total employment of the sector increases by 1.8 percent

The total employment for the sector was recorded at 147,961 workers in 2017, an increase of 1.8 percent compared with the 145,324 workers reported in 2016. Of the total employment, 147,505 were paid workers and the rest were working owners and unpaid workers.

By industry group, computer programming, consultancy and related activities had the highest number of workers of 60,951. Data processing, hosting and related activities; web portals, and wireless telecommunications activities placed second and third with 17,377 and 15,518 workers, respectively.

Figure 2 shows the distribution of employment for all establishments of the sector by industry group in 2017.

An average of 54 workers per establishment was recorded in 2017. This number was higher by 68.8 percent compared with the average of 32 workers per establishment in 2016. Software publishing and wireless telecommunications activities posted the highest among industries with an average of 398 workers per establishment, while other telecommunications activities had the lowest average of eight workers per establishment.

Employees in the television programming and broadcasting activities industry receives the highest average annual compensation

The sector paid a total compensation of PhP99.4 billion in 2017, which translates to an average annual compensation of PhP674.0 thousand per paid worker. Compared with the average annual pay of PhP605.0 thousand per paid worker in 2016, the average annual pay in 2017 increased by 11.4 percent.

Among the industries, television programming and broadcasting activities paid the highest average annual compensation of PhP1,641.4 thousand per paid worker. On the other hand, radio broadcasting paid the lowest average annual compensation of PhP242.0 thousand per paid worker.

Figure 3 shows the average annual compensation of paid workers for the top five industries of the sector in 2017.

Wireless telecommunications activities industry generates the biggest share to total income and expense

The sector generated a total income of PhP653.1 billion and incurred a total expense of PhP526.5 biliion in 2017, an annual growth of 4.2 percent and 0.8 percent, respectively, relative to their values in 2016.

The top three industry groups in terms of income and expense for the sector were as follows:

•  Wireless telecommunications activities with income of PhP234.4 billion and expense of PhP192.3 billion
•  Computer programming, consultancy and related activities with PhP135.6 billion income and PhP111.6 billion expense
•  Wired telecommunications activities with PhP133.3 billion income and expense of PhP97.7 billion

Figure 4 shows the top five industry groups in terms of income and expense for all establishments by industry groups in 2017.

The income per peso expense generated by the sector for all establishments stood at 1.24 in 2017. This indicates an increase of 3.3 percent from the income per peso expense of 1.20 in the previous year.

Industry-wise, data processing, hosting and related activities; web portals recorded the highest income per peso expense of 1.72. This was followed by wired telecommunications activities with income per peso expense of 1.36. Motion picture, video and television programme activities ranked third with income per peso expense of 1.30.

Value added of the sector reaches PhP280.9 billion

The value added estimated in 2017 for the sector was PhP280.9 billion, higher by 16.6 percent compared with the PhP241.0 billion value added in 2016.

The top three contributors to the total value added of the sector were the following industries:

•  Wireless telecommunications activities, PhP76.4 billion (27.2%)
•  Computer programming, consultancy and related activities, PhP67.8 billion (24.1%)
•  Wired telecommunications activities, PhP65.1 billion (23.2%)

Wired telecommunications activities industry records the highest labor productivity

Labor productivity, which is the ratio of value added to employment, was estimated at PhP1,898.7 thousand per worker in 2017. This represents an increase of 14.5 percent compared with the PhP1,658.5 thousand per worker in 2016.

Industry-wise, wired telecommunications activities recorded the highest labor productivity of PhP6,408.5 thousand per worker. On the other hand, radio broadcasting recorded the lowest labor productivity of PhP413.2 thousand per worker.

Figure 5 shows the labor productivity for the top five industries of the sector for all establishments by industry group in 2017.

Sales from e-commerce transactions increase by 12.1 percent

E-commerce refers to the selling of products or services over electronic system. Total sales from e-commerce transactions of the sector amounted to PhP605.4 million in 2017, higher by 12.1 percent compared with the PhP540.1 million sales in 2016.

Among the industries, computer programming, consultancy and related activities contributed the highest share of PhP395.7 million or 65.4 percent to the total e-commerce sales.

Gross additions to tangible fixed assets sum up to PhP51.9 billion

Gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by the sector was valued at PhP51.9 billion in 2017. This amount was lower by 2.7 percent from the PhP53.4 billion in 2016.

Wireless telecommunications activities had the highest contribution of 60.4 percent to total gross additions to tangible fixed assets.

Government grants PhP144.9 million subsidy

Total subsidies granted by the government for the sector in 2017 amounted to PhP144.9 million. This subsidy was distributed to the three industries of the sector, namely, television programming and broadcasting activities (PhP138.0 million), radio broadcasting (PhP6.0 million), and satellite telecommunications activities (PhP937.0 thousand).

(Sgd.) ROSALINDA P. BAUTISTA
Assistant Secretary
Deputy National Statistician
Sectoral Statistics Office

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for all Information and Communication establishments (Sector J).

The ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2017.

The survey was conducted nationwide in 2018 with the year 2017 as the reference period of data, except for employment which is as of 15 November 2017.

Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2017 ASPBI questionnaires in the provinces as well as the online accomplishment of questionnaire through the PSA website.

Data are presented by industry sub-group or 3-digit 2009 Philippine Standard IndustrialClassification (PSIC) at the national level.

Legal Authority

The conduct of the 2017 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013, which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2017 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:

•  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 of Motor Vehicles and 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)

The survey was confined to the formal sector of the economy, which consists of the following:

•  Corporations and partnership
•  Cooperatives and foundations
•  Single proprietorship with employment of 10 and over
•  Single proprietorships with branches

Hence, the 2017 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).

Frame of Establishments

The frame for the 2017 ASPBI was extracted from the 2017 List of Establishments (LE). The estimated number of establishments in operation in the country in 2017 totaled to 917,582. About 228,112 establishments (24,9%) of the total establishments comprise the establishments frame are within the scope and coverage of the 2017 ASPBI.

Unit of Enumeration

The unit of enumeration for the 2017 ASPBI is the establishment. An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of economic activity at a single fixed location.

Taxonomy of Establishment

An establishment is categorized by its economic organization, legal organization, industrial classification, employment size, and geographic location.

Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.

Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.

Industrial classification of an economic unit was 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 PSA Resolution No. 01 Series of 2017-158 signed on 14 February 2017 was utilized to classify economic units according to their economic activities.

Size of an establishment is determined by its TE as of a specific date. TE refers to the total number of persons who work in or for the establishment.

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.

Geographic Classification refers to the grouping of establishments 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 PSGC as of 31 December 2017 was used for the 2017 ASPBI.

Sampling Design

The 2017 ASPBI uses a stratified systematic sampling with 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

a. Non-Certainty Stratum

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

where:

s        denotes the non-certainty employment strata in TE of less than 20
X_sj  = value of the j^th establishment in non-certainty employment stratum in TE of less than 20 in S^th industry domain
j      =  1,2,3..., n_s establishments
W_sj= weight of the j^th establishment in the non-certainty employment stratum of less than 20 in the s^th industry domain

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

b. Certainty Stratum

The total of a characteristic (X_c) 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
x_cj = value of the j^th establishment in the certainty employment strata in TE of less than 20 in the c^th industry domain
j      = 1,2,3,..., m_c establishments
m_c  = number of establishments in the certainty employment strata in TE of less than 20 in the c^th industry domain

c. 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, the 17 administrative regions serve as the geographic domains while the 5-digit level of the 2009 PSIC serves as the industry domains.

Estimation Procedure for Establishments with TE of 20 and Over

a. Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99)
Sections A, C, E,FG, 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 an industry domain in each region,

where:

s         denotes the non-certainty employment strata in TE of 20 and over
p       = 1, 2,..., 17  regions (geographic domains)
x_spj   = value of the j^th establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
j        = 1, 2, 3,…, n_sp establishments
W_spj =weight of the j^th  establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

N_sp = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
n_sp  = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

b. Certainty Stratum (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCCs and with  TE 100 and over)

The estimate of the total of a characteristic for the certainty employment stratum in an industry domain in each region,

where:

c      = denotes the certainty employment strata in TE of 20 and over
p      = 1, 2,..., 17 regions (geographic domains)
x_cpj  = value of the j^th establishment in the certainty employment strata in TE of 20 and over for an industry domain within each region
j       = 1, 2, 3, …, m_cp  establishments
m_cp = number of establishments in the certainty employment strata in TE of 20 and over in an industry domain within each region

c. Total Estimate for TE of 20 and Over

The estimate of the total of a characteristic for the industry domain in each region (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 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’_spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was

where:

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

Response Rate

Response rate for all Information and Communication sector was 90.6 percent (3,528 out of 3,896 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 85 establishments responded online.

Reports of the remaining non-reporting establishments were taken from the financial statements from Securities and Exchange Commission (SEC) and other available data sources. Reports of establishments which were found to be duplicate of another establishment, out-of-scope and out of business in 2017 were not included in the generation of statistical tables.

Limitation of Data

The survey covered only the formal sector of the economy.

Concepts and Definitions of Terms

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

Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.

E-commerce is the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.

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.

Expense are 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.

Gross additions to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

Income or Revenueare 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.

Inventories are 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.

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, 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.

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.

Value added is gross output less intermediate input. Gross output for Information and Communication sector is the sum of income from service rendered, real estate sales less real estate sold, commissions and fees earned, income from renting and leasing services of real estate properties, income from non-industrial service done for others (less rent income from land), sales of goods (less cost of goods sold), grants and donations, other income, capital expenditures of fixed assets produced on own account and change in inventories.  Intermediate input is the sum of the following expense items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; industrial services done by others;  non-industrial services done by others (less rent expense for land); goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; payouts and other expense.