Service sector of the Philippine

1. The Role of the Service Sector in the
Economy

2. The Service Sector
• It consists of transportation,
communications and
storage, domestic trade,
finance, housing,
government and private
services.
• It is a sector which
produces services instead
of just an end product
which is tangible

3. The Service Sector
• Its primary role is to serve
as facilitator in the entire
process of production,
distribution and
consumption.

4. • Statistics show that the
growth of the service sector
has been pushed onward by :
1. Telecommunications
2. Wholesale and retail trade
3. Private services
The Service Sector

5. Telecommunications
• It provides necessary
resources for or
prerequisites to other
industries in terms of
information being
delivered.

6. • National Telecommunications System
It is an agency of the Philippine government under the
Commission on Information and Communications
Technology responsible for the supervision, adjudication
and control over all telecommunications services
throughout the Philippines.
Telecommunications

7. Transportation
• It may be regarded as “
place utility” to
manufacturing, it takes
the raw materials to the
factory and converted
goods to consumers.
• It is the artery for the
free-flow of people,
goods, and information.

8. Transportation
• Rail transportation
• Land transportation
DPWH- is in charge of
building roads and
bridges to ease
transportation in the
country
• Water Transportation
• Air Transportation

9. Finance Industry
• Includes banks and
insurance companies. It
is based on the principle
of efficiency for it
eliminates the need for
barter in the trading of
goods and services.
• It serves as intermediary
or bridge between the
fund sources and fund
users
(See list of top banks in the Phils)

10. Wholesale and Retail Trade
• Marketing function is
performed by any
business that is a
necessary mediator
between the production
or purchase of goods
and services and their
sale or consumption.

11. • Wholesaling is the sale of
commodities in large
quantities
• Retailing is the sale of
goods in small quantities
direct to the consumers for
personal or household
consumption.
Wholesale and Retail Trade

12. Wholesale and Retail Trade
• Distribution is performed by
wholesalers and retailers.
Each wholesaler buys from
several hundred
manufacturers and sells to
several thousand retailers.
Each retailer buys thousand
of products from 10 to 20
wholesalers and sells them
to thousand consumers.

13. Types of Retail Stores
• Specialty Store
• Department Store
• Supermarket
• Convenience Store
• Superstore

14. Housing
• Barriers to housing:
1. Housing finance
2. High transaction and
production costs in the
housing market
3. Escalating land prices

15. Private Services
• Consists of educational, medical,
entrepreneurial, recreational, hotel,
restaurant, and other services.

16. Significance of the Service Sector
• Source of Livelihood
• Source of Services
• Source of national income and output

17. Qualities of Filipino Workers in the Service
Sector
1. Highly skilled workforce
with strong work ethic
2. World-class proficiency in
English
3. Improved methods and
system
4. Intercultural skills
5. Self-reliance

18. Institutions that help the Service Sector
Institution Functions
National Telecommunications
Commission
Exercises jurisdiction over supervision and
control of all telecommunications services
throughout the country.
National Housing Authority Tasked to develop and implement a
comprehensive and integrated housing
program
Department of Trade and Industry Assigned to promote growth of
enterprises and strengthen trade in the
domestic and international markets.
Technical Education and Skills
Development Authority
Assigned to develop the skills of middle
class workers
Philippine Ports Authority Tasked to construct and modernize the
different ports and modernize water
transport

19. Institutions that help the Service Sector
Institution Functions
Department of Transportation and
Communications
Tasked with the maintenance, expansion
and modernization of an efficient and
dependable transportation and
communication system as an effective
mean for economic recovery and progress
Local Water Utilities Administration Tasked with accelerating countryside
water supply through service coverage,
lending assistance and water
infrastructure development.
Government Service Insurance System
and Social Security System
Tasked with implementing programs for
the protection of workers in the
government and private sectors,
respectively.

20. Challenges faced by the Service Sector
• Maintaining a sufficient pool
of efficient workers
• Stiff competition from
neighboring Asian countries
• Thinking small
• Security risk and instability

21. Group Activity
• Why are Filipinos considered by many as among
the most hard working, efficient, and loyal workers
in the world?
• Why is it important to maintain these qualities?
• Do you believe that lack of global awareness on the
advantages that Philippines can offer in the service
sector affects the economy? Why or why not?

22. Journal Reflection
“ The highest destiny of the individual is to serve
rather than to rule”