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2019 Survey on Information and Communication Technology (SICT) - For All Establishments: Final Results

Release Date:
Reference Number: 2023-28

Table A. Number of Establishments/Employees According to Selected
Information and Communication Technology (ICT) Indicators
for All Establishments: Philippines, 2019

This Special Release presents the final results of the 2019 Survey on Information and Communication Technology (SICT) for All Establishments, comprised of the core and non-core ICT industries. The survey covered the 18 sectors of the 2009 Philippine Standard Industrial Classification (PSIC), which are presented at the national level by sector. The 2019 SICT was conducted in 2020 as a rider to the 2019 Annual Survey of Philippine Business and Industry.

1. Number of establishments that owned and used computers and communication equipment reached 268,314

A total of 282,865 establishments were recorded in the country in 2019. Out of this number, 268,314 establishments or 94.9 percent owned and used computers and communication equipment in their business operations. (Tables A and 1)

Among the 18 sectors covered, Wholesale and Retail Trade; Repair of   Motor Vehicles and Motorcycles sector led in terms of the number of establishments that owned and used computers and communication equipment with 110,667 establishments or 41.2 percent of the total. This was followed by Financial and Insurance Activities sector with 38,440 establishments or 14.3 percent and Accommodation and Food Service Activities sector with 33,629 establishments or 12.5 percent of the total. On the other hand, Mining and Quarrying sector reported the least number of 255 establishments or 0.1 percent that owned and used computers and communication equipment in their business operations. (Figure 1 and Tables A and 1)

Figure 1. Number of Establishments that Owned and Used Computers and
Communication Equipment for All Establishments by Sector
Philippines, 2019

Table B. Sector Code and Description based on the 2009 Philippine Standard
Industrial Classification (PSIC)

2. About eight in ten establishments had internet connection or access

The total number of establishments with internet connection or access was recorded at 228,076 or 80.6 percent of the total number of establishments in 2019. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles sector posted the highest number of establishments with internet connection or access, which has a total of 88,116 establishments (38.6%). This was followed by Financial and Insurance Activities sector and Accommodation and Food Service Activities sector with 36,422 establishments (16.0%) and 27,723 establishments (12.2%), respectively. (Figure 2 and Tables A and 1)

Figure 2. Number of Establishments with Internet Connection or Access for All
Establishments by Sector: Philippines, 2019

In 2019, there were 139,503 establishments or 49.3 percent of the total number of establishments which used the internet in downloading or requesting government forms. Among the sectors, Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles sector registered the highest number of 48,104 establishments (34.5%), which used the internet in downloading or requesting government forms. Meanwhile, the Mining and Quarrying sector registered the least with 185 establishments (0.1%), which used the internet in downloading or requesting government forms. (Figure 3 and Table 7)

Figure 3. Number of Establishments which Used the Internet for Downloading or Requesting
Government Forms for All Establishments: Philippines, 2019

Internet was also used by the establishments for the following activities:

a. Obtaining information from other organizations, 116,114 establishments or 41.0 percent;
b. Sharing or distribution of information within the establishment, 96,420 establishments or 34.1 percent;
c. Sharing or distribution of information with other organizations, 78,451 establishments or 27.7 percent;
d. Staff training, 72,210 establishments or 25.5 percent; and
e. Internal or external recruitment, 70,346 establishments or 24.9 percent. (Table 6)

3. About 69 thousand establishments had website

The number of establishments with website reached 68,809 or 24.3 percent of the total number of establishments reported in 2019. (Tables A and 3)

By sector, Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles sector reported the highest number of establishments with website at 19,138 establishments (27.8%). This was followed by Financial and Insurance Activities sector with 18,616 establishments (27.1%) and Accommodation and Food Service Activities sector with 9,392 establishments (13.6%). On the other hand, Mining and Quarrying sector had the least with only 38 establishments (0.1%) with website. (Table 3)

4. Accommodation and Food Service Activities posted the highest number of establishments with e-commerce transactions via the internet

E-commerce transactions via the internet include receiving orders for goods and services, purchasing goods and services, or both receiving and purchasing goods and services. In 2019, there were 62,412 establishments or about 22.1 percent of the total number of establishments which had e-commerce transactions via the internet. (Tables A and 5)

Of the 18 sectors, Accommodation and Food Service Activities sector had the highest number of establishments with e-commerce transactions via the Internet with 15,341 establishments (24.6%). This was followed by Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles sector and Financial and Insurance Activities sector with 13,191 establishments (21.1%) and 9,912 establishments (15.9%), respectively.   (Figure 4 and Table 5)

Figure 4. Number of Establishments with E-commerce Transactions via the Internet for All
Establishments by Sector: Philippines, 2019

5. Employees of Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles were the most engaged in using mobile phones for business transactions

The cellular mobile phone is another medium that can be used for doing business.  In 2019, there were 131,575 establishments or 46.5 percent of the total establishments which were engaged in the use of mobile phones in their business transactions. (Tables A and 5)

The top five sectors in terms of the number of establishments that used mobile phones in their business transactions in 2019 were the following:

a. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles, 55,339 establishments or 42.1 percent;
b. Accommodation and Food Service Activities, 22,569 establishments or 17.2 percent;
c. Manufacturing, 13,362 establishments or 10.2 percent;
d. Financial and Insurance Activities, 13,173 establishments or 10.0 percent; and
e. Education, 4,821 establishments or 3.7 percent. (Table 5)

6. About four in ten establishments had social media accounts

The presence of social media accounts was reported at 115,519 establishments or 40.8 percent of the total number of establishments in 2019. (Tables A and 8)

Across sectors, the Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles sector had the highest number of 37,594 establishments with social media accounts, while Mining and Quarrying sector had the least with 66 establishments. (Table 8)

7. Around 3.30 million employees routinely used computer at work, while 2.95 million routinely used computer with internet connection at work

A total of 7.74 million employees was recorded in 2019 based on the final results of the 2019 Annual Survey of Philippine Business and Industry. Of this number, 3.30 million employees or equivalent to 42.7 percent of the total employees routinely used computer at work in 2019. Moreover, 2.95 million employees routinely used computer with internet connection or access at work, which is around 38.1 percent of the total employees. (Tables A and 2)

By sector, the Administrative and Support Service Activities sector both led the number of employees who routinely used computer at work and routinely used computer with internet connection at work, with 986,003 employees and 968,275 employees, respectively. On the other hand, Mining and Quarrying had the least number of employees who routinely used computer at work with 3,218 employees, and the least number of employees who routinely used computer with internet connection at work with 3,100 employees. (Table 2)

 

DIVINA GRACIA L. DEL PRADO, Ph.D.
(Assistant National Statistician)
Officer-in-Charge, Deputy National Statistician
Sectoral Statistics Office


TECHNICAL NOTES

Introduction

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 the 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.

Domain

The geographic domain of the core ICT industries is the region, while 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.

Estimation procedure

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:

where:

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
        = 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:

where:

A1s    = adjustment factor for industry domain s
X1k    = eligibility status of the kth sample establishment (1 if eligible, 0 otherwise)
X2k    = responding status of the kth sample establishment (1 if responding, 0 otherwise)

Adjusted Weight

The adjusted weight is the product of the base weight and adjustment factor due to non-response.  That is,

where:

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:

where:

 A2h         = adjustment factor for conformity with ASPBI
= estimated number of establishments in stratum h in ASPBI
= preliminary estimated number of establishments in stratum h in SICT which is computed as:

Final Weight

The final weight is the product of the adjusted weight and the second adjustment factor. That is,

where:

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 stratum is given by:

where:

 = Total by industry-employment stratum for core ICT industries
= Total by industry-employment stratum for non-core ICT industries

Total by Industry Stratum

The estimator for the total of a characteristic in each industry stratum is given by:

where:

= Total by industry stratum for core ICT industries
= Total by industry stratum for non-core ICT industries

Total by Employment Stratum

The estimator for the total of a characteristic in each employment stratum in a domain is given by:

where:

 = Total by employment stratum for core ICT industries
  = Total by employment stratum for non-core ICT industries

National Total

The estimator for the national total of a characteristic is given by:

where:

= Total by industry stratum for core ICT industries
= Total by industry stratum for non-core ICT industries
  = Total by employment stratum for core ICT industries
  = Total by employment stratum for non-core ICT industries

VI. Response Rate

The overall response rate for the 2019 SICT was 78.1 percent (10,120 of the 12,959 sample establishments). This included receipts of good 1 questionnaires, partially accomplished questionnaires, and reports of closed, moved out, or out-of-scope establishments. Out of the total responding establishments, 388 (3.0%) establishments responded online.

______________________________________
1 refers to questionnaires with complete entries in the required data items

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).

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.