Computer programming, consultancy and related activities industry posts the highest in terms of number of establishments
The Annual Survey of Philippine Business and Industry (ASPBI) preliminary results reported that a total of
Among the industries, computer programming, consultancy and related activities had the highest number of establishments of 363 or 44.7 percent of the total for the sector. Publishing of books, periodicals and other publishing activities followed with 81 establishments or 10.0 percent. Satellite telecommunications activities ranked third with 78 establishments or 9.6 percent.
Figure 1 shows the percentage distribution of the number of establishments with TE of 20 and over for Information and Communication sector by industry group in 2017.
Among the regions, the National Capital Region (NCR) had the most number of establishments of 550 or 67.7 percent of the total. Central Visayas placed far second with 75 establishments (9.2%).
Computer programming, consultancy and related activities industry records the highest number of workers
In 2017, employment reached a total of 131,793 workers, of which 131,673 were paid employees and the rest were working owners and unpaid workers. Compared with the 2016 total employment of 127,561, an increase of 3.3 percent was noted in the 2017 total employment.
Computer programming, consultancy and related activities had the highest number of workers of 55,401 or 42.0 percent of the total employment for the sector. Data processing, hosting and related activities; web portals followed with 16,927 workers (12.8%) and wireless telecommunications activities with 15,273 workers (11.6%).
Figure 2 shows the distribution of employment for establishments with TE of 20 and over for the sector by industry group in 2017.
Among the regions, NCR had the highest number of workers of 109,099 or 82.8 percent of the total. Central Visayas followed with 10,053 workers (7.6%) and Central Luzon placed third with 2,799 workers (2.1%).
In 2017, an average of 162 workers per establishment was recorded for the sector for establishments with TE of 20 and over. This number was higher by 7.3 percent compared with the average of 151 workers per establishment in 2016.
By industry group, wireless telecommunications activities recorded the highest with an average of 664 workers per establishment, while radio broadcasting had the lowest at 41 workers per establishment.
Television programming and broadcasting industry pays the highest average annual compensation
The sector paid a total compensation of PHP94.5 billion for establishments with TE of 20 and over, translating to an average annual compensation of PHP717.5 thousand per paid employee. Compared with the average annual pay of PHP656.0 thousand per paid employee in 2016, the average annual pay in 2017 increased by 9.4 percent.
Among the industries, television programming and broadcasting activities paid the highest average annual compensation of PHP1,654.4 thousand per paid employee. This was followed by wired telecommunications activities and other information service activities, paying an average annual compensation of PHP1,465.3 thousand and PHP1,139.5 thousand per employee, respectively.
Figure 3 shows the average annual compensation of paid employees for establishments with TE of 20 and over for the sector by industry group in 2017.
At the regional level, establishments with TE of 20 and over in Ilocos Region paid the highest average annual compensation of PHP923.1 thousand per employee while Caraga paid the lowest, PHP74.3 thousand per employee.
Wireless telecommunications activities industry generates the biggest share in income and expense
The total income generated by the sector for establishments with TE of 20 and over amounted to PHP585.9 billion in 2017, higher by 1.5 percent from the PHP577.1 billion income in 2016.
By industry group, wireless telecommunications activities had the biggest share to total income, amounting to PHP233.9 billion or 39.9 percent. Computer programming, consultancy and related activities placed second with income amounting to PHP118.4 billion (20.2%). Wired telecommunications activities with income of PHP104.4 billion (17.8%) ranked third.
On the other hand, total expense incurred in 2017 reached PHP470.4 billion, lower by 2.0 percent from the PHP479.8 billion expense in 2016.
Wireless telecommunications activities which was the biggest income generator, also had the biggest proportion to total expense worth PHP191.8 billion or 40.8 percent. Computer programming, consultancy, and related activities and wired telecommunications activities ranked second and third with expenses amounting to PHP99.3 billion (21.1%) and PHP71.8 billion (15.3%), respectively.
At the regional level, NCR had the highest income and expense which amounted to PHP551.9 billion and PHP446.0 billion, respectively. Central Visayas followed far second with total income of PHP11.2 billion and total expense of PHP 9.2 billion. On third post was Ilocos Region with total income of PHP7.5 billion and total expense of PHP4.3 billion.
Data processing, hosting and related activities post the highest returns
The income per peso expense generated by the sector for establishments with TE of 20 and over stood at 1.25 in 2017. This indicates an increase of 3.6 percent from the income per peso expense of 1.25 in the previous year.
Industry-wise, data processing, hosting and related activities; web portals recorded the highest income per peso expense of 1.72. Other industries that surpassed the sector’s income per expense ratio in 2017 were as follows:
• Motion picture, video and television programme activities, 1.49
• Wired telecommunications activities, 1.45
• Sound recording and music publishing activities, 1.45
Among the regions, Ilocos Region recorded the highest income per peso expense of 1.74 while Zamboanga Peninsula and Caraga registered the lowest, each with income per peso expense of 1.02.
Value added reaches PHP253.5 billion
In 2017, the total value added generated by the sector for establishments with TE of 20 and over was estimated at PHP253.5 billion, higher by 13.7 percent compared with the PHP223.0 billion value added in 2016.
The top three contributors to the total value added were the following industries:
• Wireless telecommunications activities, PHP76.3 billion (30.1%)
• Computer programming, consultancy and related activities, PHP60.5 billion (23.9%)
• Wired telecommunications activities, PHP52.4 billion (20.6%)
Labor productivity, which is the ratio of value added to employment, was estimated at PHP1,923.8 thousand per worker in 2017. This represents an increase of 10.1 percent compared with the PHP1,748.0 thousand per worker in 2016.
By industry group, wired telecommunications activities recorded the highest labor productivity of PHP5,208.3 thousand per worker. On the other hand, radio broadcasting had the lowest labor productivity of PHP480.5 thousand per worker.
Figure 4 shows the labor productivity of the top five industries of the sector for establishments with TE of 20 and over by industry group in 2017.
Across the country, Ilocos Region posted the highest labor productivity of PHP7,695.1 thousand per worker while Caraga registered the least, with labor productivity of PHP121.4 thousand per worker.
Computer programming, consultancy and related activities generates the highest sales from e-commerce
E-commerce refers to the selling of products or services over electronic system. Total sales from e-commerce transactions of the sector for establishments with TE of 20 and over amounted to PHP552.3 million in 2017, higher by 2.6 percent compared with the PHP538.5 million sales in 2016.
Among the industries, computer programming, consultancy, and related activities contributed the highest share to total e-commerce sales amounting to PHP429.7 million or 77.8 percent.
Of the 18 regions, only four reported sales from e-commerce transactions in 2017, namely, NCR (PHP525.2 million), Central Visayas (PHP24.7 million), Western Visayas (PHP1.5 million), and Bicol Region (PHP798 thousand).
(Sgd.) ROSALINDA P. BAUTISTA
Deputy National Statistician
Sectoral Statistics Office
This Special Release presents the preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for Information and Communication sector for establishments with total employment of 20 and over.
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 in 2017.
The survey was conducted nationwide in 2018 with 2017 as the reference period of data, except for employment which is as of 15 November 2017.
The Establishment Data Management System (EDMS) was utilized in the decentralized processing of survey returns in the provinces as well as in the online accomplishment of questionnaires through the PSA website.
Data are presented by industry group or 3-digit level of the 2009 Philippine Standard Industrial Classification (PSIC) at the national and regional level.
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 establishment frame or 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 activity at a single fixed location.
Taxonomy 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 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.
The 2017 ASPBI uses a 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 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, 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,
s = denotes the non-certainty employment strata in TE 20 to 49 and TE 50 to 99
p = 1, 2,...17 regions (geographic domains)
Xspj = value 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
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 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 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, Business Process Management (BPM) industries, Government-owned and controlled corporations (GOCCs) and with TE 20 and over)
c = denotes the certainty employment strata in TE of 20 and over
p = 1, 2,...17 regions (geographic domains)
Xcpj = value of the jth establishment in the certainty employment strata in TE of 20 and over for an industry domain within the 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) is obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,
where d denotes the industry domains and p refers to region.
National level estimate of the the characteristics 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, 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
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)
The response rate for Information and Communication establishments with TE of 20 and over was 89.6 percent (854 out of 953 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 23 establishments responded online.
Reports of the remaining non-reporting establishments were taken from financial statements from the Securities and Exchange Commission (SEC) and other available data sources. Reports of establishments that were found to be duplicate of another establishment’s report, 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 Definition 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 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.
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.
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 refers to the 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 addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Income or Revenue refers to cash received and receivables for goods/products andby-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 refer to the 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.
Total employment is the number of persons who worked in for the establishment as of 15 November 2017.
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; and other expense.