Table A. Proportion of Information Economy Establishments/Employees According to Selected Information and Communication Technology (ICT) Indicators for Non-core ICT Industries: Philippines, 2019
This Special Release presents the results of the 2019 Survey on Information and Communication Technology (SICT) for Non-core ICT industries. The survey covered the 18 sectors of the 2009 Philippine Standard Industrial Classification (PSIC). Non-core ICT industries include these sectors, except the information and communication sector, and some industries in the manufacturing, the wholesale and retail trade; repair of motor vehicles and motorcycles, and the other service activities sectors, which were under the core ICT industries.
1. Proportion of establishments that owned, and used computers, and communication equipment was recorded at 94.7 percent
A total of 275,735 establishments in the non-core ICT industries were recorded in 2019. Of this number,
Of the 17 sectors, three reported a 100.0 percent proportion for this indicator. The remaining sectors recorded more than 90.0 percent, except for Other Service Activities with
Figure 1. Proportion of Establishments under Non-core ICT Industries that Owned and
Used Computers and Communication Equipment by Sector: Philippines, 2019
Table B. Industry Code and Description based on the 2009 Philippine Standard Industrial Classification (PSIC)
2. Eight in ten establishments had Internet connection or access in 2019
The proportion of establishments in the non-core ICT industries with internet connection or access was 80.2 percent in 2019.
Among the sectors, establishments from the Electricity, Gas, Steam and Air Conditioning Supply, and Education sectors recorded a proportion of 100.0 percent that had internet connection. (Table 1 and Figure 2)
Figure 2.Proportion of Establishments under Non-core ICT Industries with Internet Access by Sector: Philippines, 2019
Moreover, more than half or 58.5 percent of the establishments in the non-core ICT industries used the internet in obtaining information from government organizations in 2019. Among the sectors, Electricity, Gas, Steam and Air Conditioning Supply registered the highest percentage of establishments which used the internet for obtaining information from government organization with 85.2 percent. (Table 5 and Figure 3)
Figure 3. Proportion of Establishments under Non-core ICT Industries which used the Internet for Dealings in Government Agencies by Type of Transaction: Philippines, 2019
The internet was also used by establishments in the non-core ICT industries for the following activities:
a. Obtaining information from other organizations (50.5%);
b. Sharing or distribution of information within the establishment (42.0%);
c. Sharing or distribution of information with other organization (34.0%);
d. Staff training (31.3%); and
e. Internal or external recruitment (30.5%)
3. Proportion of establishments with website registered at 23.9 percent
Web presence or the proportion of establishments with website in the non-core ICT industries was recorded at 23.9 percent in 2019.
By sector, Electricity, Gas, Steam, and Air Conditioning Supply reported the highest proportion of establishments with website at 64.4 percent, while Agriculture, Forestry and Fishing had the least with only 9.8 percent. (Tables A and 2).
4. About 22.0 percent of establishments reported E-commerce transactions via the Internet
The proportion of establishments with e-commerce transactions via the Internet was recorded at 22.0 percent in 2019.
Among sectors, Electricity, Gas, Steam, and Air Conditioning Supply had the highest proportion of establishments with e-commerce transactions via the internet with 49.6 percent. Accommodation and Food Service Activities and Construction followed with 41.9 percent and 41.3 percent, respectively. On the other hand, Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles had the least proportion (11.2%). (Tables A and 3, and Figure 4)
Figure 4. Proportion of Establishments under Non-core ICT Industries with E-commerce Transactions via the Internet by Sector: Philippines, 2019
5. Proportion of employees using mobile phone in business transactions reached 46.6 percent
The cellular mobile phone is another medium that can be used for doing business. Of the total establishments in the non-core ICT industries, 46.6 percent used mobile phones in their business transactions in 2019.
The top five sections in terms of proportion of establishments which used mobile phone in their business transactions in 2019 were:
a. Construction, 62.9 percent;
b. Accommodation and Food Service Activities, 61.6 percent;
c. Transportation and Storage, 56.0 percent;
d. Manufacturing, 55.5 percent; and
e. Human Health and Social Work Activities, 52.4 percent. (Table 3)
6. About four in ten establishments had social media accounts
The presence of social media accounts among establishments under the non-core ICT industries reached 40.5 percent in 2019.
Education had the highest proportion of establishments with social media account (73.2%), while Agriculture, Forestry, and Fishing had the least (17.1%). (Table 6)
7. About forty-two percent of employees use computer routinely at work while 37.5 percent routinely use computer with internet connection at work
At the national level, 41.9 percent used computers routinely at work in 2019. By sector, Professional, Scientific and Technical Activities reported the highest proportion of employees using computer routinely at work at 88.3 percent. Meanwhile, Construction had the least proportion of 8.5 percent. (Tables A and 1)
Moreover, 37.5 percent of the total employees under the non-core ICT industries used computers routinely at work with internet connection or access in 2019. Across sectors, Professional, Scientific and Technical Activities registered the highest proportion of employees that used computers routinely at work with internet connection (83.9%), while Construction had the least (7.6%). (Tables A and 1)
(Sgd.) DENNIS S. MAPA, Ph.D.
National Statistician and Civil Registrar General
The 2019 Survey on Information and Communication Technology (SICT) was the eighth in the series of SICT conducted by the Philippine Statistics Authority (PSA). It was a rider to the 2019 Annual Survey of Philippine Business and Industry (ASPBI) conducted in 2020.
The 2019 SICT collected and generated information on the availability, distribution, and access/utilization of Information and Communication Technology (ICT) among establishments in the country.
Specifically, the survey measured the following:
a. component of ICT resources and their utilization by establishments;
b. diffusion of ICT into establishments from various sources;
c. e-commerce transactions from data on e-commerce sales/revenue and purchases;
d. cellular mobile phone business transactions from data on sales/revenue;
e. estimate of the number of ICT workers in establishments;
f. methods of disposal of ICT equipment; and
g. presence of social media accounts.
II. Data Collection and Processing
The 2019 SICT utilized only one type of questionnaire (SICT Form 1) for all sectors which was distributed to sample establishments by field office personnel. All information collected in the 2019 SICT refers to calendar year 2019, except for employment where reference period is as of 15 November 2019. The SICT Form 1 followed the 2017 SICT questionnaire design with minor revisions due to the addition of some data items and categories recommended by the Department of Information and Communications Technology (DICT).
Sample establishments were given various options in accomplishing the survey questionnaire, and these are:
a. Online Questionnaire, which can be accessed at https://sict.psa.gov.ph;
b. Electronic Questionnaire, which can be accomplished in fillable Portable Document Format (.pdf) or excel (.xlsx) file format; and
c. Printed Questionnaire, which is the traditional and physical version of the questionnaire.
The Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2019 SICT questionnaires in the provinces.
III. Taxonomy of Establishments
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. It 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. It may be a single establishment, branch, establishment and main office with branches elsewhere, main office only, or an ancillary unit other than main office.
Legal Organization refers to the legal form of the economic entity which owns the establishment. It may be a single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, or 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 total employment as of the time of visit during the latest Updating of the List of Establishments.
Total Employment (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. Also included 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 2019 was used for the 2019 SICT.
IV. Scope and Coverage
The 2019 SICT was undertaken nationwide and covered all industries in the 2019 ASPBI as classified in the 2009 Philippine Standard Industrial Classification (PSIC). For the purpose of the survey, these industries were classified as core ICT industries and non-core ICT industries.
Non-core ICT industries exclude the information and communication sector, and some industries in the manufacturing, the wholesale and retail trade; repair of motor vehicles and motorcycles, and the other service activities sectors, which were under the core ICT industries.
V. Sampling Design
The 2019 SICT utilized stratified systematic sampling design with 3-digit PSIC serving as industry strata (industry domain) and employment size as the second stratification variable, except for ICT Core and Business Process Management (BPM) industries which were at the 5-digit PSIC level.
The geographic domain of the core ICT industries is the region, while for the non-core ICT industries is at the national level. The industry domain/stratum for the non-core ICT industries are the 3-digit PSIC industry groups, while the core ICT industries are the 5-digit PSIC industry sub-classes. The employment domain/stratum is the Micro, Small,and Medium Establishments (MSME) classification.
Unit of Enumeration
The unit of enumeration of the survey is the establishment.
Sampling Frame of Establishments
The frame for the 2019 SICT was extracted from the preliminary 2019 List of Establishments (LE) as of 5 February 2020. Samples were selected from the list of samples of the 2019 ASPBI to ensure that the samples for the SICT are subset sample of ASPBI.
1) Estimation of Survey Weights
a) Base Weight
The base weight is the inverse of the probability of selection. For the SICT, the base weight for each domain is given by:
whk = weight of the kth establishment in hth stratum
Nh = total no. of establishments in hth stratum
nh = total no. of sample establishments in hth stratum
h = refers to the industry-employment stratum
b) Adjusted Weight
Adjustment Factor Due to Non-Response
To take into account the non-responding sample establishments, the adjustment factor by region and industry domain is as follows:
A1s = adjustment factor for industry domain s
X1k = eligibility status of the kth sample establishment (1 if eligible, 0 otherwise)
X2 = responding status of the kth sample establishment (1 if responding, 0 otherwise)
The adjusted weight is the product of the base weight and adjustment factor due to non-response. That is,
w1hk = adjusted weight of the kth sample establishment in stratum h
whk = base weight of the kth establishment in the hth stratum
A1s = adjustment factor for industry domain s
c) Final Weight
Adjustment Factor for Conformity with ASPBI
In order to conform with the estimate of total non-core ICT establishments in the ASPBI, final adjustment factor is computed as follows:
A2h = adjustment factor for conformity with ASPBI
= estimated number of establishments in stratum hin ASPBI
= preliminary estimated number of establishments in stratum h in SICT which is computed as:
The final weight is the product of the adjusted weight and the second adjustment factor. That is,
w'hk = final weight of the kth sample establishment in stratum h
w1hk = adjusted weight of the kth sample establishment in stratum h
A2h = adjustment factor for conformity with ASPBI
2) Estimation of Total
Total by Industry-Employment Stratum
The estimator for the total of a characteristic in each industry-employment stratumis given by:
yhk = sample value of the kth sample establishment in stratum h
whk = Final weight of the kth sample establishment in stratum h
Total by Industry Stratum
The estimator for the total of a characteristic in each industry stratum is given by:
hi = Number of employment strata for industry stratum i
Total by Employment Stratum
The estimator for the total of a characteristic in each employment stratum in a domain is given by:
hj = Number of industry strata for employment stratum j
The estimator for the national total of a characteristic is given by:
I = Total number of industry strata
J = Total number of employment strata
VI. Response Rate
The overall response rate for the 2019 SICT was 78.1 percent (10,124 of the 12,958 sample establishments). This included receipts of good questionnaires, partially accomplished questionnaires, and reports of closed, moved out, or out-of-scope establishments. For Non-Core ICT industries, the response is 76.6 percent (6,945 of the 9,069 sample establishments). Out of the total responding establishments, 384 (3.8%) establishments responded online.
VII. Concepts and Definitions
E-commerce or electronic commerce refers to the sale of goods and services where an order is placed by the buyer, price, and terms of sale are negotiated over the Internet Protocol-based networks, an extranet, Electronic Data Interchange (EDI) network, or other online systems.
Extranet is a network or internetwork that is limited in scope to a single organization or entity, but which also has limited connections to the networks of one or more other usually, but not necessarily, trusted organizations or entities (e.g. a company's customers may be given access to some part of its intranet creating in this way an extranet, while at the same time the customers may not be considered 'trusted' from a security standpoint).
1refers to questionnaires with complete entries in the required data items
Information Economy (IE) is a term used to describe the economic and social value created through the ability to rapidly exchange information anytime, anywhere, and to anyone. It is characterized by the intensive use by businesses of ICT for the collection, storage, processing, and transmission of information. The use of ICT is supported by supply of ICT products from an ICT-producing sector and through trade.
Information and Communication Technology (ICT) as defined by the Commission on Information and Communication Technology (CICT) is "the totality of electronic means to collect, store, process and present information to end-users in support of their activities". It consists, among others, of computer systems, office systems, and consumer electronics, as well as network information infrastructure, the components of which include the telephone system, the Internet, fax machines, and computers.
ICT Resources are equipment, knowledge and human resources used to support electronic business/manufacturing processes and the conduct of electronic commerce transactions. It includes computer and peripheral equipment, systems and application software, network channels, telecommunication equipment, routers, satellite, and other ICT hardware used in electronic business and commerce transactions, ICT support services and ICT workers.
Internet is a global system of interconnected computer networks that interchange data by packet switching using the standardized Internet Protocol Suite (TCP/IP). It is a "network of networks" that consists of millions of private and public, academic, business, and government networks of local to global scope that are linked by copper wires, fiber-optic cables, wireless connections, and other technologies. The internet carries various information resources and services, such as electronic mail, online chat, file transfer and file sharing, online gaming, and the inter-linked hypertext documents and other resources of the World Wide Web (WWW).
Intranet is a set of networks, using the Internet Protocol and IP-based tools such as web browsers and file transfer applications, that is, under the control of a single administrative entity. That administrative entity closes the intranet to all but specific, authorized users. Most commonly, an intranet is the internal network of an organization.
Local Area Network (LAN) is a computer network covering a small physical area, like a home, office, or small group of buildings, such as a school, or an airport. Current LANs are most likely to be based on Ethernet technology. Each workgroup can get to its local printer. Note that the printers are not accessible from outside their workgroup.
Network channel is a collection of computers connected to each other that allows them to communicate with each other and share resources and information. All networks are made up of basic hardware building blocks to interconnect network nodes, such as Network Interface Cards (NICs), Bridges, Hubs, Switches, and Routers.
Web site is a collection of Web pages, images, videos, or other digital assets that is hosted on one or more web servers, usually accessible via the internet. All publicly accessible websites are seen collectively as constituting the "World Wide Web". The pages of a website can usually be accessed from a common root URL called the homepage, and usually reside on the same physical server.
Wide Area Network (WAN) is a computer network that covers a broad area (i.e., any network whose communications links cross metropolitan, regional, or national boundaries. Less formally, a WAN is a network that uses routers and public communications links. The largest and most well-known example of a WAN is the internet. A WAN is a data communications network that covers a relatively broad geographic area (i.e. one city to another and one country to another country) and that often uses transmission facilities provided by common carriers, such as telephone companies.