Manufacturing is Phl’s top revenue earner

CEBU, Philippines - In the preliminary results of the 2010 Annual Survey of Philippine Business and Industry (ASPBI), manufacturing topped as the revenue earner for both the Philippines while mining and quarrying was recorded to employ the highest average number of workers in the country. 

The ASPBI aims to provide and generate information on levels of economic activities and performance of business in the entire country. 

The 2010 survey is the 41st series of annual survey of establishments conducted by the National Statistics Office (NSO) that included establishments in the formal sector nationwide and covered 18 economic sectors as defined in the Philippine Standard Industrial Classification. 

It has a sample size of 29,000 establishments with an overall response rate at 95%. 

As presented by NSO- Bohol Provincial Statistics Officer Jessamyn Anne Alzacazaren, the manufacturing industry contributed  P.55 trillion in the Philippines’ total revenues of P8.73 trillion. 

It also generated the highest value added at 33.1 percent of the P2.69 trillion of the country.

Central Visayas accounted about 4.65% or P401 billion of the total revenue generated with the manufacturing industry contributing 53% of the revenues for the region. 

Highest employment rate recorded in the country for 2010 belonged to the mining and quarrying sector with 125 workers per establishment. 

While employees from electricity, gas, steam and air conditioning supply and information and communication are the highest paid at P45,949.

In Central Visayas, arts, entertainment and recreation ranked the highest in terms of average monthly compensation at P33,070 while agro, forestry and fishing recorded the lowest at P4,529. 

It was also found out in the comparative ASPBI data from 2001 to 2010 that services increasingly accounts the highest share in the number of establishments at 71.8% and contributes an increasing trend in total employment at 58.6%. 

Industry also accounts the biggest of the total revenues at 54% and is six times greater in terms of value added compared to agriculture. 

Meanwhile, Professor Fernando Fajardo of the University of San Carlos said that the manufacturing has to be strongly promoted for investments since it has more backward linkages compared to other sectors that could help alleviate poverty in the country.

He noted that mining and quarrying “surprisingly” has the highest number of workers even if the country is against mining due to its environmental impact. 

He added that the Philippines should decide on what level of mineral deposit concentration it can tolerate since the mining sector generates more value-added revenues and attracts foreign investors.  

Fajardo also cited that the highest-paid employees come from the electricity, gas, steam and air-conditioning supply and ICT but considered these sectors as relatively small. 

Robert Go, chairman of the Economic Development Committee of the Regional Development Council, questioned the NSO why micro, small and medium enterprises (MSME) that comprise 80 to 90% of the economic activities were not included in the survey.

He said that the MSME sector of the wholesale and retail industry should be considered a material factor in the study for the economic development of the country. 

He recommended the inclusion of small-scale entrepreneurs from the informal sector who have less than 20 employees in the annual survey of the government agency as it can result to a “big” difference of its findings. 

Final results of the 2010 ASPBI will be collated this December and will be released for publication on March 2013. (FREEMAN)