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Release Date :
Reference Number :
2005-152

Miscellaneous business activities topped the industry

The 2002 Annual Survey of Philippine Business and Industry covered a total of 35,461 real estate, renting and business activities establishments in 2001. About 33,804 or 95.3 percent of the total figure were establishments with average total employment (ATE) of less than 20 and 1,657 or 4.7 percent were establishments with ATE of 20 or more.

Among the industry divisions, miscellaneous business activities (K74) like legal, accounting, bookkeeping activities; advertising; investigation and security activities; and related technical consultancy comprised the largest number of establishments accounting for more than half (20,605 or 58.1 percent) of the total count for the sector. Far next was renting of machinery and equipment without operator; personal and household goods (K71) with 10,249 or 28.9 percent, followed by real estate activities (K70) with 2,897 or 8.2 percent. On the other hand, research and development (K73) had the least number with only 67 establishments (0.2 percent). Figure 1 shows the distribution of real estate, renting and business activities establishments by industry division.

Majority of workers were involved in miscellaneous business activities

The real estate, renting and business activities sector employed a total workforce of 356,280 workers in 2001. Of the total, 322,709 (90.6 percent) were paid employees and 33,571 (9.4 percent) were working owners or unpaid workers. Being the largest in number, miscellaneous business activities (K74) employed more than three-fourths (271,596 or 76.2) of the total workforce. Far next were real estate activities (K70) and renting of machinery and equipment without operator; personal and household goods (K71) with 30,902 or 8.7 percent and 28,901 or 8.1 percent, respectively. Meanwhile, research and development (K73) registered the least with 5,768 workers or 1.6 percent.

Workers in computer and related activities were top earners in 2001

In 2001, the sector paid a total compensation of P36.6 billion, equivalent to an average monthly pay of P9,443 per paid employee.

Industrywise, miscellaneous business activities (K74) paid the highest compensation of about P 27 billion accounting for almost three-fourths (73.8 percent) of the sector?s total. Real estate activities (K70) placed second with P4.2 billion (11.5 percent). Computer and related activities (K72) ranked third with P3.5 billion (9.7 percent). In contrast, renting of machinery and equipment without operator; personal and household goods (K71) reported the lowest amount of P872.8 million (2.4 percent).

People working in computer and related activities (K72) received the highest monthly compensation of P16,036; closely followed by workers in research and development (K73), P14,380 and real estate activities (K70), P11,444. However, employees in renting of machinery and equipment without operator; personal and household goods (K71) received the lowest average monthly pay of P5,069. Table A displays the average monthly compensation per paid employee by industry division

Miscellaneous business and real estate activities, the sector?s major contributors in revenue and costs

Gross revenue realized by real estate, renting and business activities sector reached P163.8 billion in 2001

Bulk of the revenue was generated by establishments engaged in miscellaneous business activities (K74) with P 74 billion (45.2 percent) and real estate activities (K70) with P66.6 billion (40.7 percent). On the other hand, research and development (K73) had the least share with P 1.8 billion (1.1 percent).

Total operating costs (excluding compensation paid to employees) incurred by the sector amounted to P102.9 billion in 2001.

Being the top earners, real estate activities (K70) and miscellaneous business activities (K74) were, likewise, the highest spenders with P51.4 billion (49.9 percent) and P37.1 billion (36 percent), respectively. On the contrary, research and development (K73) incurred the least cost of P894.1 million (0.9 percent). Figure 2 shows the distribution of revenue and costs by industry division.

Revenue per peso cost was valued at P1.59

For every peso spent, P1.59 was earned by the real estate, renting and business activities sector.

The highest revenue per peso cost was noted in research and development (K73) at P2.02; while the lowest, in real estate activities (K70), at P1.30. Figure 3 shows the revenue per peso cost by industry division.

Value added totaled to P79 billion in 2001

Total value added derived by real estate, renting and business activities sector amountedto P79 billion in 2001.

Among the industry divisions, miscellaneous business activities (K74) had the highest value added comprising more than half (P41.6 billion or 52.7 percent) of the total. Real estate activities (K70) ranked second with P26.1 billion (33 percent) and computer and related activities (K72) ranked third with P7.8 billion (9.8 percent). On the other hand, research and development (K73) recorded the least with P1.1 billion (1.3 percent).

Gross additions to fixed assets reached P9.3 billion

Gross additions to fixed assets acquired by real estate, renting and business activities establishments totaled to P 9.3 billion.

Miscellaneous business activities (K74) recorded the biggest gross additions to fixed assets amounting to P 3.4 billion (36.7 percent). Real estate activities (K70) closely followed with P3.2 billion (35 percent). Whereas, research and development (K73) registered the least with P153 thousand (1.6 percent).

Change in inventories totaled to P392.6 million

Total change in inventories (ending less beginning inventory) amounted to P392.6 million in 2001.

Real estate activities (K70) and renting of machinery and equipment without operator; personal and household goods (K71) recorded a positive change in inventories of P602.9 million and P21.6 million, respectively; while all other industries registered negative values.

Subsidies granted by government amounted to P564.6 million

Total subsidies granted by government to support real estate, renting and business activities establishments was P564.6 million in 2001.

The largest amount of subsidies was received by research and development companies (K73) amounting to P412.4 million representing almost three fourths (73 percent) of the total figure. This was followed by real estate activities (K70) reporting an amount of P101.1 million (17.9 percent). However, no amount was recorded in renting of machinery and equipment without operator; personal and household goods (K71).

 


TECHNICAL NOTES

Scope and Coverage

The 2002 Annual Survey of Philippine Business and Industry (ASPBI) formerly known as Annual Survey of Establishments (ASE) was conducted to collect information on the structure and trends of economic activities in the entire country for the year 2001. Covered were establishments engaged in economic activities as defined under the 1994 Philippine Standard Industrial Classification (PSIC). These establishments were classified into 14 sectors, one of which was on Real estate, Renting and Business Activities (Sector K). The sector is composed of establishments engaged in real estate activities (K70); renting of machinery and equipment; personal and household goods (K71); computer and related activities (K72); research and development (K73); and miscellaneous business activities (K74).

All real estate, renting and business activities establishments nationwide with average total employment (ATE) of 100 and over were covered on a 100 percent basis and those with ATE less than 100 were selected using simple random sampling.

Response

A total of 1,330 or 88.14% responded out of the 1,509 samples drawn for the sector. Adjustments for non-response were made through imputations

Concepts and Definition of terms

Establishment is an economic unit, which engages under a single ownership or control, i.e. under a single legal entity, in one, or predominantly one kind of economic activity at a single fixed location.

Economic activity or business is the activity of the establishment as classified under the1994 Philippine Standard Industrial Classification (PSIC). The main activity refers to the activity that contributes the biggest or major portion of the gross income or revenue of the establishment.

Total Employment is the number of persons who worked in or for the establishment as of November 15, 2001.

Paid employees are all persons working in the establishments receiving pay as well as those working away from the establishment when paid by and under the control of the establishment. Included are persons working as full-time or part-time and those employees on sick leave or maternity leave, paid vacation or holiday. Excluded are consultants, home workers and workers receiving commission only.

Unpaid workers include working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working without regular pay for at least one third of the working time normal to the establishment.

Salaries and wages are payments in cash or in kind, prior to deduction for employee?s contribution to SSS/GSIS, withholding tax, etc. Included are total basic pay, vacation, sick, maternity leave pay, overtime pay, and other benefits.

Revenue refers to cash received and receivables for goods sold and services rendered.

Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at market 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

Gross addition to fixed assets assets refer to the cost of acquisition of fixed assets acquired in 2001 less the value of sales of fixed assets during the year.

Fixed assets are physical assets expected to have productive life of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, fixtures, machinery, tool, furniture, office equipment, vehicles, and the like.

Capital expenditures refer to the cost of acquisition of fixed assets acquired in 2001 whether or not full payments have been made.

Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to develop an industry or production and to protect it against competition.

Inventories refer to stocks of goods owned by or under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchaser?s price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.

Change in Inventories as a derived indicator is computed as the value of ending inventory less the value of beginning inventory.

Value added is the total revenue plus capital expenditures (own account) plus change in inventories less total cost (net of indirect taxes and interest).

Detailed Statistical Tables

The detailed tables at the national and regional levels are available upon request from the Industry Statistics Division, National Statistics Office, 4th Floor Solicarel Bldg II, Ramon Magsaysay Blvd., Sta. Mesa, Manila Tel. No. (062) 716-39-32.

 


Source:   National Statistics Office
              Manila, Philippines

 

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