2020 Annual Survey of Philippine Business and Industry (ASPBI) - Information and Communication Sector: Preliminary Results

Table A. Comparative Summary Statistics for Information and
Communication Sector: Philippines, 2019 and 2020

Other telecommunications activities industry group led in terms of the total number of establishments

The preliminary results of the Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 3,370 establishments in the formal sector of the economy were engaged in information and communication activities in 2020. This number represents a decrease of -18.1 percent from the 4,115 establishments reported in 2019. (Tables A and 1)

Among the industry groups, other telecommunications activities recorded the highest number of establishments of 1,153 or 34.2 percent of the total. Computer programming, consultancy and related activities followed with 889 establishments (26.4%) and radio broadcasting with 410 establishments (12.2%). (Table 1 and Figure 1)

Figure 1. Percentage Distribution of Information and Communication Sector
by Industry Group: Philippines, 2020

Among the regions, the National Capital Region (NCR) had the highest recorded number of establishments of 1,373 or 40.7 percent of the total. This was followed by CALABARZON and Central Visayas with 337 establishments and 269 establishments, respectively. (Table 3)

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

A total of 169,811 workers were hired by establishments engaged in information and communication activities in 2020. Compared to the total employment of 192,691 in 2019, a decrease of -11.9 percent was noted in the total employment of this sector in 2020. Of the total, 169,053 (99.6%) were paid employees, while the rest were working owners or unpaid workers. (Tables A and 1)

Computer programming, consultancy and related activities employed the largest number of workers of 73,955 (43.6%). Wireless telecommunications activities followed with 16,740 workers (9.9%) and data processing, hosting and related activities; web portals with 16,513 workers (9.7%). (Table 1 and Figure 2)

Figure 2. Distribution of Employment for Information and Communication Sector
by Industry Group: Philippines, 2020

At the regional level, NCR employed 132,840 employees or 78.2 percent of the total. This was distantly followed by Central Visayas and Central Luzon with 13,237 employees (7.8%) and 6,025 employees (3.5%), respectively. (Table 3)

An average of 50 workers per establishment was recorded for the information and communication sector in 2020. (Tables A and 2)

Out of the 13 industry groups, seven industries surpassed the average number of workers per establishment recorded for the sector. Sofware publishing led with an average of 468 workers per establishment, while other telecommunications activities had the lowest at seven workers per establishment. (Table 2)

Computer programming, consultancy and related activities industry group paid the highest total compensation

The sector paid a total compensation of PhP 136.02 billion in 2020, translating to an average annual compensation of PhP 804.62 thousand per paid employee. (Tables A and 1)

Among the industry groups, computer programming, consultancy and related activities received the highest compensation of PhP 55.72 billion. This was followed by wireless telecommunications activities and wired telecommunications activities receiving a total compensation of PhP 24.20 billion and PhP 19.80 billion, respectively. (Table 1)

In terms of the average annual compensation, employees of television programming and broadcasting activities industry received the highest, amounting to PhP 1,882.36 thousand per paid employee. Wireless telecommunications activities followed with an average annual compensation of PhP 1,445.88 thousand per paid employee. Software publishing came in third with PhP 1,272.32 thousand per paid employee. (Table 2 and Figure 3)

Across the country, NCR paid the highest average annual compensation of PhP 925.73 thousand per paid employee. Central Visayas and Western Visayas paid PhP 485.00 thousand and PhP 432.29 thousand per paid employee, respectively. On the other hand, Eastern Visayas paid the lowest average annual compensation of PhP 79.05 thousand per paid employee. (Table 4)

Wireless telecommunications activities generated the biggest share of total revenue and expense

The sector generated a total revenue of PhP 639.84 billion and incurred a total expense of PhP 540.64 billion in 2020. (Tables A and 1, Figure 4)

The top three industry groups which led both in revenue and expense for the sector were as follows:

1. Wireless telecommunications activities with total returns amounting to PhP 247.55 billion (38.7%) and total payments of PhP 213.17 billion (39.4%);
2. Computer programming, consultancy, and related activities with total earnings of PhP 143.52 billion (22.4%) and expenditure of PhP 130.63 billion (24.2%); and
3. Wired telecommunications activities with proceeds of PhP 115.90 billion (18.1%) and spendings amounting to PhP 88.26 billion (16.3%). (Table 1 and Figure 4)

Among the regions, NCR had the biggest share to total income amounting to PhP 590.82 billion (92.3%). Central Luzon followed second with total revenue of PhP 17.02 billion (2.7%). On third post was Central Visayas with total revenue of PhP 11.75 billion (1.8%). (Table 3)

In terms of expense, NCR also had the biggest share amounting to PhP 504.47 billion (93.3%). By far, followed by Central Visayas with expense of PhP 10.61 billion (2.0%). In third place was Central Luzon with expense of PhP 8.02 billion (1.5%). (Table 3)

The generated revenue per peso expense of the sector stood at PhP 1.18. Among the industry groups, data processing, hosting and related activities; web portals recorded the highest revenue per peso expense of PhP 1.94. This was followed by software publishing and other information service activities with recorded revenue per peso expense ratio of 1.86 and 1.80, respectively. (Tables A and 2)

Total subsidies granted by the government amounted to PhP 197.04 million

In 2020, the total subsidies granted by the government to the sector amounted to PhP 197.04 million. Computer programming, consultancy and related activities received the highest subsidy from the government amounting to PhP 176.16 million (89.4%). (Table 1)

At the regional level, NCR reported the largest subsidy received from the government amounting to PhP 181.18 million (91.9%). (Table 3)

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

TECHNICAL NOTES

I. Introduction

This Special Release presents the preliminary results of the 2020 Annual Survey of Philippine Business and Industry (ASPBI) for Information and Communication establishments (Sector J).

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 for the year 2020.

The conduct of the 2020 ASPBI is authorized under Republic Act No. 10625 known as the Philippine Statistical Act of 2013 which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

II. Data collection and Processing

The survey was conducted nationwide in 2021 with the year 2020 as the reference period, except for employment whose reference period is as of 15 November 2020.

Sample establishments were given various options in accomplishing the survey questionnaire. These were the following:

1. online questionnaire available at https://aspbi.psa.gov.ph;
2. electronic copy of the questionnaire either in portable document format (.pdf) or Excel (.xlsx) file format; and
3. printed copy of the questionnaire.

The Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2020 ASPBI questionnaires in the provinces.

Data are presented by industry group or 3-digit classification as classified under the 2009 Philippine Standard Industrial Classification (PSIC).

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.

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, or an ancillary unit other than the main office.

Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment 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 2020 was used for the 2020 ASPBI.

IV. Scope and Coverage

The 2020 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:

1. Agriculture, Forestry and Fishing (A)
2. Mining and Quarrying (B)
3. Manufacturing (C)
4. Electricity, Gas, Steam, and Air Conditioning Supply (D)
5. Water Supply; Sewerage, Waste Management and Remediation Activities (E)
6. Construction (F)
7. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)
8. Transportation and Storage (H)
9. Accommodation and Food Service Activities (I)
10. Information and Communication (J)
11. Financial and Insurance Activities (K)
12. Real Estate Activities (L)
13. Professional, Scientific and Technical Activities (M)
14. Administrative and Support Service Activities (N)
15. Education (P)
16. Human Health and Social Work Activities (Q)
17. Arts, Entertainment and Recreation (R)
18. Other Service Activities (S)

The survey was confined to the formal sector of the economy, which consists of the following:

1. Corporations and partnership
2. Cooperatives and foundations
3. Single proprietorship with employment of 10 and over
4. Single proprietorships with branches

Hence, the 2020 ASPBI covered only the following economic units:

1. All establishments with total employment (TE) of 10 or more; and
2. 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.

V. Sampling Design

The 2020 ASPBI uses stratified systematic sampling design with 3-digit or 5-digit PSIC as the first stratification variable, depending on the sector, and total employment, which is classified into Micro, Small, Medium establishments (MSME), as the second stratification variable.

Stratified systematic sampling is a process of dividing the population into homogeneous groups, calledstrata, and then selecting independent samples in each stratum systematically. This method ensures that all important subgroups of the population are represented in the sample and increases precision of "overall" survey estimates.

Domain

The geographic domain of the 2020 ASPBI is region. The industry domain/stratum is 3-digit or 5-digit industry classification, and the employment domain/stratum is the MSME classification.

Unit of Enumeration

The unit of enumeration for the 2020 ASPBI is the establishment.

Sampling Frame of Establishments

The sampling frame for the 2020 ASPBI was extracted from the preliminary 2020 List of Establishments (LE) as of 06 January 2021. This frame was used to draw the sample establishments for the survey. The preliminary 2020 LE showed that there were 1,000,440 establishments in operation in the country of which 336,205 establishments comprised the sampling frame or the establishments that are within the scope and coverage of the 2020 ASPBI.

Estimation Procedure

1) Estimation of Survey Weights

Base Weight

The base weight is the inverse of the probability of selection. For the ASPBI, the base weight for each domain is given by:

where:

w_hk = weight of the k^th establishment in the h^th stratum
N_h = total no. of establishments in the h^th stratum
n_h = total no. of sample establishments in the h^th stratum
h = refers to the industry-employment stratum

Adjustment Factor

To take into account the non-responding sample establishments, the adjustment factor by region and industry domain is as follows:

where:

A_s = adjustment factor for industry domain s
X_1k = eligibility status of the k^th sample establishment (1 if eligible, 0 otherwise)
X_2k = responding status of the k^th sample establishment (1 if responding, 0 otherwise)

Final Weight

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

where:

w'_hk = final weight of the k^th sample establishment in stratum h
w_hk = weight of the k^th establishment in the h^th stratum
A_s = adjustment factor for industry domain s

2) Estimation of Total

Total by Industry-Employment Stratum

The estimator for the total of a characteristic in each industry-employment stratum in a region (geographic domain) is given by:

where:

y_hk = value of the k^th sample establishment in stratum h
w'_hk = final weight of the k^th sample establishment in stratum h

Total by Industry Stratum and Domain

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

where:

h_i = number of employment strata for industry stratum i

Total by Employment Stratum and Domain

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

where:

h_j = number of industry strata for employment stratum j
r = subscript for geographic domain r

Total by Geographic Domain

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

where:

I = total number of industry strata in geographic domain r
J = total number of employment strata in geographic domain r

Total by Industry Stratum (National)

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

where:

R = total number of regions

Total by Employment Stratum (National)

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

National Total

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

VI. Response Rate

Response rate for all Information and Communication sector was 85.8 percent (3,621 out of 4,220 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, and reports of closed, moved out or out-of-scope establishments.

Of the total responses, 142 establishments responded online.

Reports of establishments which were found to be duplicate of another establishment, out-of-scope and out of business in 2020 were not included in the generation of statistical tables.

VII. Concepts and Definitions of Terms

Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer on behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.

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 is 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.

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.

Revenue is the 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.

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.

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