2015 Annual Survey of Philippine Business and Industry (ASPBI) - Information and Communication Sector For Establishments with Total Employment of 20 and over: Preliminary Results

Reference Number: 2017-267
Release Date: 06 November 2017

Computer programming, consultancy and related activities industry leads in the number of establishments

Preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 744 establishments with total employment of 20 and over in the formal sector of the economy were engaged in the Information and Communication sector.

Among industries, computer programming, consultancy and related activities had the highest number of establishments with 321 or 43.1 percent of the total. Publishing of books, periodicals and other publishing activities followed with 82 establishments or 11.0 percent. Satellite telecommunications activities ranked third with 77 establishments or 10.3 percent. Figure 1 shows the percentage distribution of establishments with total employment of 20 and over.

Among regions, the National Capital Region (NCR) had the most number of establishments with 525 establishments or 70.6 percent of the total. Central Visayas and CALABARZON placed a far second and third with 57 establishments (7.7%) and 29 establishments (3.9%), respectively.

Computer programming, consultancy and related activities generates the highest number of workers

Employment in 2015 reached a total of 131,760 employees. Almost all personnel (99.9%) were paid employees and the rest were working owners or unpaid workers.

Computer programming, consultancy and related activities had the most number of staffs with 39.8 percent of the total and equivalent to 52,445 employees. This was followed by data processing, hosting and related activities; web portals with 18,001 employees (13.7%). Wireless telecommunications activities ranked third with 16,082 employees (12.2%). Figure 2 shows the distribution of employment of the sector for establishment with total employment of 20 and over.

Across regions, NCR was the top employer generating jobs for 108,278 employees (82.2%). This was followed by Central Visayas and Negros Island Region (NIR) with 8,703 employees (6.6%) and 3,239 employees (2.5%), respectively.

Workers in the wired telecommunications industry are highest-paid employees

The sector paid a total compensation of PHP82.6 billion, equivalent to an average annual compensation of PHP627.8 thousand per paid employee in 2015.

Among the industries, computer programming, consultancy and related activities spent the highest in compensation with PHP33.9 billion (41.0%) or an average annual compensation of PHP647.0 thousand per paid employee. Wired telecommunications activities followed, with a total compensation of PHP13.4 billion (16.3%), however, workers from this industry were the highest-paid with an average annual compensation of PHP1.4 million per paid employee. Wireless telecommunications activities ranked third with total compensation of PHP11.6 billion (14.0%) or an average annual compensation of PHP720.9 thousand per paid employee. Figure 3 displays the average annual compensation of the sector.

By region, establishments from NCR paid the highest total compensation worth PHP76.1 billion (92.1%). This translates to an average annual compensation of PHP703.5 thousand per paid employee leading all other regions. Employees from Ilocos Region placed second getting an average annual compensation of PHP652.6 thousand and Central Visayas ranked third, where workers received an average annual compensation of PHP384.1 thousand.

Wireless telecommunications activities contributes the biggest share in income and expense

In 2015, gross income generated by the sector reached PHP519.1 billion. Wireless telecommunications activities had the biggest share with PHP223.0 billion or 43.0 percent of the total. Wired telecommunications activities ranked second with PHP95.7 billion (18.4%). Computer programming, consultancy and related activities ranked third with PHP87.2 billion (16.8%).

Among regions, NCR earned the highest income amounting to PHP497.8 billion (95.9%). Central Visayas and Ilocos Region followed a far with PHP7.0 billion (1.4%) and PHP3.6 billion (0.7%), respectively.

Total expenses incurred amounted to PHP437.3 billion in 2015. Being the major contributor in total income for the sector, wireless telecommunications activities had the largest proportion of expense with PHP189.7 billion (43.4%). This was followed by computer programming, consultancy and related activities and by wired telecommunications activities with PHP80.3 billion (18.4%) and PHP65.7 billion (15.0%) respectively. Figure 4 shows the top industry groups in terms of income and expense.

By region, NCR incurred highest expense amounting to PHP419.3 billion (95.9%). Central Visayas and Ilocos Region followed next with PHP6.4 billion (1.5%) and PHP3.0 billion (0.7%), respectively.

Income per peso expense at 1.19 in 2015

In 2015, the income per peso expense produced by the sector for establishments with total employment of 20 and over stood at 1.19.

Among industries, wired telecommunications activities recorded the highest income per peso expense at 1.46 surpassing the national ratio of 1.19. Motion picture, video and television programme activities followed next with 1.41. Sound recording and music publishing activities ranked third with 1.35 income per peso expense.

By region, Western Visayas recorded the highest ratio of 1.44 followed by SOCCSKSARGEN and CAR at 1.43 and 1.34, respectively.

Value added amounts to PHP209.4 billion

Value added for the Information and Communication sector with total employment of 20 and over was estimated at PHP209.4 billion in 2015.

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

  • Wireless telecommunications activities, PHP80.8 billion (38.6%);
  • Computer programming, consultancy and related activities, PHP44.2 billion (21.1%); and
  • Wired telecommunications activities, PHP39.1 billion (18.7%).

Value added per total employment,a measure of simple labor productivity, was estimated at PHP1,589.2 thousand. Wireless telecommunications activities led the sector with PHP5,026.9 thousand while data processing, hosting and related activities; web portals posted the lowest with PHP406.8 thousand. Figure 5 shows the labor productivity for Information and Communication sector.

Ilocos Region posted the highest value added per total employment among regions with a ratio of PHP3,960.1 thousand per worker. On the other hand, Eastern Visayas had the least with PHP259.4 thousand pesos.

Gross additions to fixed assets reach PHP67.0 billion

Gross additions to fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP67.0 billion in 2015.

Wireless telecommunications activities acquired the biggest gross addition to fixed assets at PHP44.9 billion. This was followed by wired telecommunications activities with PHP12.1 billion and satellite telecommunications activities with PHP3.5 billion.

Across regions, NCR recorded the highest gross addition amounting to PHP65.3 billion while Zamboanga Peninsula had lowest gross addition worth PHP97.0 thousand.

Publishing of books, periodicals and other publishing activities posts the highest total change in inventories

Change in inventories is defined as the value of ending less beginning inventory. Among the three industries that recorded positive change in inventories, publishing of books, periodicals and other publishing activities recorded the highest with PHP293.1 million. Other industries that posted positive change in inventories were the following:

  • Computer programming, consultancy and related activities, PHP16.8 million;
  • Data processing, hosting and related activities; web portals, PHP4.6 million;

Total subsidies received from the government amounts to PHP618.3 million

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. Subsidies received in 2015 amounted to PHP618.3 million. Television programming and broadcasting activities led all other industries with grants amounting to PHP583.7 million.

Sales in E-commerce reaches PHP1.2 billion

E-Commerce refers to the selling of products or services over electronic systems. In 2015, sales from e-commerce amounted to PHP1.2 billion. Wired telecommunications activities had the biggest share amounting to PHP992.4 million or 80.0 percent of the total. This was followed by publishing of books, periodicals and other publishing activities, with PHP181.5 million.


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for the Information and communication sector for establishments with total employment of 20 and over.

The 2015 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 2015.

The survey was conducted nationwide in 2016 with the year 2015 as the reference period of data, except for employment which is as of November 15, 2015.

Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2015 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website.

Data are presented at the national and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC)..

Legal Authority

The conduct of the 2015 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2015 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 partnerships
  •  Cooperatives and foundations
  •  Single proprietorship with employment of 10 and over
  •  Single proprietorship with branches

Hence, the 2015 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 2015 ASPBI was extracted from the 2015 List of Establishments (LE). The estimated number of establishments in operation in the country in 2015 totaled to 909,786. About 259,386 establishments (29.0% of the total establishments) belong to the formal sector of which 223,821 (86.3%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.

Unit of Enumeration

The unit of enumeration for the 2015 ASPBI is the establishment

Classification of Establishments

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 NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.

Size of an establishment 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.

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 December 31, 2015 was used for the 2015 ASPBI.

Methodology

Sampling Design

Selection of sample establishment for the 2015 ASPBI was done using stratified systematic sampling with 5-digit PSIC serving as industry strata and employment size as the second stratification variable.

For establishments with TE of 20 and over, the 18 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, F, 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 an industry domain in each region 

 

where:

      s = denotes the non-certainty employment strata in TE of 20 to 49 and TE 50 TO 99        

      p = 1, 2,..., 18 regions (geographic domains)        

   Xspj = value of the jthestablishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 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 with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region                                                                                                                                                                                      

   Nsp = total number of establishments in the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99 for an industry domain in each region

    nsp = number of sample establishments in the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99 for an industry domain in each region

 

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

       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,...18 regions (geographic domains)

   Xcpj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region 

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

  mcp = 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 (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

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

Where:

 Nsp = 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 of 20-99 for the industry domain within each geographic domain (region)

 

Response Rate

Response rate for Information and communication sector for establishments with TE of 20 and over was 92.9 percent (905 out of 974 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 33 establishments responded online.

Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2015.

Limitation of Data

Only the formal sector was covered in the survey.

 

Concepts and Definitions of Terms

 

Establishment is defined as 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.

Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.

Total employment is the number of persons who worked in for the establishment as of November 15, 2015.

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.

Income or Revenue refers to 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.

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.

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.

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.

Valued added  is gross output less intermediate input. Gross output for information and communication is the sum of total income (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 inventory. Intermediate input is equal to 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; and other expense.

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