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Remittance growth slows in February

REUTERS
A collection of US dollar bills with Euro banknotes are seen displayed in this photo illustration. — DINENDRA HARIA / SOPA IMAGES/SIPA USA VIA REUTERS

CASH REMITTANCES from overseas Filipino workers (OFWs) increased in February, although at its slowest pace in 13 months, reflecting the impact of the resurgence of coronavirus disease 2019 (COVID-19) infections in many countries.

Data from the Bangko Sentral ng Pilipinas (BSP) released on Monday showed cash remittances rose 1.3% to $2.509 billion in February from $2.476 billion a year earlier. 

Overseas Filipinos’ cash remittances (Feb. 2022)This is the smallest monthly inflow in three months or since the $2.502 billion haul in November.

February remittance growth was the slowest since the 1.7% fall seen in January 2021.

“The growth in personal remittances in February 2022 was slower, however, compared to that in January at 2.5% due in part to the reimposition of restrictions in OF (overseas Filipino) host countries and the Philippines amid a resurgence in COVID cases across the globe,” the BSP said.

In February, remittances sent by land-based workers went up 1.2% to $2.007 billion, while those sent by sea-based workers rose 1.6% to $501 million.

“(February remittance data) has yet to capture any impact from the Ukraine invasion which may impact remittances from Europe and those host countries near Ukraine and Russia,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.

Russia began its invasion of Ukraine on Feb. 24.

However, Mr. Asuncion said the protracted Russia-Ukraine war may be a drag on remittance growth, especially for OFWs in some European countries.

The central bank has said that both Russia and Ukraine have minimal contribution to total remittance inflows. However, it warned that a war that would involve Europe and Western countries like the United States, that are major remittance sources, could mean a bigger impact for inflows.

ING Bank-NV Manila Senior Economist Nicholas Antonio T. Mapa said the slower remittance growth in February was also likely due to the depreciation of the peso versus the greenback.   

“A weaker peso allows OFWs to send home a smaller amount of dollars to cover peso expenses. In an environment of a weakening local currency and (largely) fixed peso expenditures, there will be less pressure on OFWs to send home more remittances in dollar terms,” Mr. Mapa said.

“For example, now that peso is at P52 per dollar, if an OFW has to send home enough dollars to pay for a P50,000-tuition, he needs to send less in dollar terms to pay the tuition ($961). Unlike last year, when peso was at P48, the OFW has to send $1,042,” he added. 

With the peso’s continued depreciation against the US dollar, Mr. Mapa said it is unlikely that remittance inflows will offset the widening trade gap.

Money sent home by Filipino migrants in the first two months of 2022 amounted to $5.177 billion, up 1.9% from the $5.078 billion in the same period of 2021.

The expansion in cash remittances during the January to February period was driven mainly by inflows from the United States, Japan, and Singapore.

For the January to February period, the US, Singapore, Saudi Arabia, Japan, the UK, the United Arab Emirates, Canada, Taiwan, Qatar, and Malaysia were the 10 biggest sources of remittances. These countries accounted for 79.6% of the inflows.

Meanwhile, personal remittances, which include inflows in kind, inched up 1.2% to $2.793 billion in February. This brought personal remittances 1.9% higher to $5.759 billion in the first two months of 2022.

UnionBank’s Mr. Asuncion said OFWs will likely price in higher household spending in the next few months, as the economy continues to reopen.

“It is possible that OFWs are already thinking of the return-to-school costs even as early as now, especially that face-to-face schooling may be restored soon,” Mr. Asuncion said.

The BSP expects remittances to grow by 4% this year.  L.W.T.Noble

Agri trade deficit widens in 2021

A VENDOR arranges vegetables at a public market in Manila. — PHILIPPINE STAR/ RUSSELL PALMA

By Luisa Maria Jacinta C. Jocson

THE agricultural trade deficit widened 40% year on year to $8.92 billion in 2021, as the country imported more agricultural products to address increased consumer demand after the economy reopened.

Data from the Philippine Statistics Authority released on Monday showed that total agricultural imports jumped by an annual 25% to $15.71 billion.

Exports also increased by 9.4% to $6.79 billion in 2021.

Total trade in agricultural goods — or the sum of exports and imports — went up by 19.8% to $22.491 billion. In 2020, total trade in agricultural goods contracted by 7.1%.

Agricultural imports accounted for 13.3% of the country’s total imports in 2021.

Among the commodity groups, cereals accounted for the largest share or 20% of agricultural imports by value at $3.15 billion in 2021. This was followed by imports of residues and waste from food industries and prepared animal fodder with a value of $1.86 billion and miscellaneous edible preparations worth $1.76 billion.

Imports from the Association of Southeast Asian Nations (ASEAN) member-countries stood at $5.44 billion or 16.8% of the total.

Indonesia was the top source of agricultural products from ASEAN with $1.65 billion or 30.3% of the total, followed by Vietnam ($1.4 billion) and Malaysia ($973.7 million).

Animal or vegetable fat and oils and other related products were the top agricultural imports from ASEAN.

The Philippines imported $1.62 billion worth of agricultural products from the European Union (EU), with imports from Spain reaching $333.49 million.

Meanwhile, agricultural exports accounted for 9.1% of the country’s total exports in 2021.

By commodity group, the value of exports of edible fruit and nuts and the peel of citrus fruits and melons was at $1.93 billion, accounting for 28.5% of the total.

The Philippines’ agricultural exports to ASEAN stood at $767.01 million, with Malaysia as the top destination of farm goods at $247.95 million.

Tobacco and manufactured tobacco substitutes were the top agricultural exports to ASEAN countries, with the total value at $253.85 million.

The Philippines’ agricultural exports to EU countries reached $1.39 billion in 2021, with the Netherlands accounting for half or $698.11 million.

ECONOMIC REOPENING
Analysts attributed the higher imports of agricultural products to the gradual reopening of the economy in the last quarter as pandemic restrictions eased.

“The wider agricultural external trade deficit of the country in 2021 may be largely attributed to the further reopening of the economy that fundamentally increased agricultural imports, as well as the higher prices of global agricultural commodities amid improved economic recovery prospects vis-a-vis some disruptions in the global supply chains due to the pandemic from 2020 to 2021 that reduced production activities while demand picked up,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

Pampanga State Agricultural University Professor Roy S. Kempis said a string of typhoons disrupted domestic agricultural output, particularly exports of fruits.

“The reason for this poor performance in the biggest segment of our agricultural exports could be attributed to losses in the production of fruits brought about by weather disturbances in 2021… Fruits are affected from flowering up to fruiting, and many of these follow a duration of six to nine months. Therefore, weather disturbances can strike, from flowering to fruiting. This was punctuated by Typhoon Odette (international name: Rai),” Mr. Kempis said in a Viber message.

Mr. Ricafort said that the trade deficit could further widen this year due to the Russia-Ukraine crisis, which has destabilized the prices of global commodities.

“Furthermore, non-monetary measures in terms of the increase in the imports of pork or meat, fish, and other food products at lower tariffs in an effort to increase local food supply and help mitigate inflationary pressures especially on food prices that account for the biggest share of the (consumer price index) basket have also partly widened the country’s agricultural trade deficit in recent months and could still be widened by these non-monetary measures in the coming months as higher global commodity prices could still bloat the country’s agricultural imports,” Mr. Ricafort added.

RBAP says raising capital requirements to hurt small lenders

BW FILE PHOTO

REGULATORY REFORMS that will require bigger capital for rural banks which would encourage mergers may be detrimental to small lenders that have been affected by the pandemic, according to the Rural Bankers Association of the Philippines (RBAP).

“We agree that mergers and consolidations lead to stronger banks and a healthy rural banking industry.  Though its intended goals are laudable, the timeline for implementation should be carefully reviewed as rural banks are still recovering from operational losses during the pandemic,” RBAP President Albert T. Concha, Jr. said in a Viber message.

Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno in March said they are in the final stages of reviewing the minimum capital requirements for rural banks, taking into account that a strong capital base will be crucial to address challenges faced by the industry.

The minimum required capital for rural banks starts at P10 million up to P200 million, depending on the location and the number of branches that will be set up by lenders.

Mr. Concha urged regulators to consider that smaller banks are in need of “extraordinary support” from the government amid the pandemic.

“Some rural banks may be unduly classified as undercapitalized due to loan loss provisioning brought about by temporary delays in collection from borrowers whose businesses have been affected by the pandemic,” he said.

“These setbacks may be temporary and does not necessarily mean that the rural bank is unstable.”

Based on central bank data, the gross nonperforming loan (NPL) ratio of the rural and cooperative banking sector stood at 12.84% as of end-2021. This was lower than the 14.67% NPL ratio a year earlier.

However, it was still much higher than the sector’s 10.48% NPL ratio seen at end-2019.

Meanwhile, Mr. Concha said that a survey among rural banks that have merged or consolidated showed that such transactions are very costly and time-consuming for small lenders.

“Some mergers actually fell apart while trying to consolidate due to the costs and pain points involved,” Mr. Concha said.

“Tax incentives and tax breaks coupled with an easier inter-agency government approval process will definitely encourage more rural banks to merge and consolidate,” he added.

The central bank said that they have closed the operations of 21 rural banks since the pandemic started in March 2020. It also processed nine rural bank transactions for mergers, consolidations and acquisitions in the same period. — Luz Wendy T. Noble

BoC fuel marking program raises P60B in Q1

BUREAU OF CUSTOMS

THE Bureau of Customs (BoC) on Monday said it has collected P60.15 billion in duties and taxes from its fuel marking program in the first quarter of 2022.

In a statement, the BoC said it marked 4.72 billion liters of gasoline, diesel, and kerosene in the January to March period as part of its efforts to curb smuggling.

Since the program started in September 2019 up to March this year, Customs has collected P374.13 billion in duties and taxes from marking 39.316 billion liters of gasoline, diesel and kerosene.

Over 73% of the fuel was marked in Luzon, while 21% was marked in Mindanao, and the rest in the Visayas.

Diesel accounted for 60% of the total volume marked, followed by gasoline at 39%. Kerosene made up the remainder.

The Bureau said that 28 oil firms were currently participating in the government’s fuel marking program.

The government sought to deter fuel smuggling through the fuel marking program, which involves injecting a special dye into fuel products to signify tax compliance. Absence of the dye is considered an indication that the fuel was likely smuggled.

The BoC and the Bureau of Internal Revenue seized 93,043 liters of diesel, 18,839 liters of kerosene, and two trucks carrying unmarked fuel, with a total estimated value of P13.36 million. The BoC said it has recommended filing criminal cases against the two private companies and 12 retail stations where the unmarked fuel was found.

“The Bureau of Customs will continuously implement its mandate to mark petroleum products under the fuel marking program to raise revenues while curbing fuel smuggling and leveling the playing field in the Philippine oil industries,” the agency said.

Meanwhile, fuel retailers were set to raise pump prices on Tuesday. The price of gasoline per liter will go up by P0.45, while diesel will increase by P1.70. Kerosene prices will jump by P0.45 per liter.

Based on data from the Department of Energy, the year-to-date price increase for diesel is P25.65 per liter, P21.10 per liter for kerosene, and P15 per liter for gasoline. — Tobias Jared Tomas

Gov’t seeking bids for 20-year Davao port management deal

ICTSI
THE GOVERNMENT is seeking bids for the contract to manage the Davao port for 20 years with a concession fee of at least P8.7 billion. — ICTSI.COM

By Arjay L. Balinbin, Senior Reporter

THE GOVERNMENT is now seeking bidders for the contract to manage the Davao port for 20 years with a minimum concession fee of P8.7 billion.

It has also awarded the P3.9-billion port terminal management contract for the Tagbilaran port in Bohol.

Documents from the Philippine Ports ​Authority (PPA) showed the government is inviting potential bidders to submit letters of intent for the public bidding for the management and operation of the cargo handling, passenger, roll-on/roll-off services (RORO) and other port-related services of the Port of Sasa, Davao.

Under the contract, the operator will also build the port’s physical landside infrastructure, which will cost a minimum of P9.9 billion.

The minimum concession fee for the project is exclusive of all taxes, the PPA said.

The agency said a prospective bidder must not be engaged in any business activity, whether primarily or otherwise, which will prevent it from properly discharging its contractual obligations.

The deadline for the submission of bids and bid opening has been set for May 5.

To recall, Dennis A. Uy-led Chelsea was awarded the original proponent status in 2019 for its unsolicited offer to modernize Davao’s Sasa port.

PPA General Manager Jay Daniel R. Santiago said in September last year that the proposal was still being evaluated by the National Economic and Development Authority.

Bidding out was an option, he also said, because the proponent had concerns about the length of the process. Chelsea Logistics President and Chief Executive Officer Chryss Alfonsus V. Damuy also said last year that the company could “explore any option depending on how it can be repackaged.”

Mr. Damuy had yet to respond to a BusinessWorld query on Monday on whether Chelsea is still interested in the Sasa port.

TAGBILARAN PORT
Meanwhile, the PPA recently awarded the port terminal management contract for the Port of Tagbilaran to the Pasig City-based joint venture of Globalport Terminals, Inc. and GlobalPort Ozamis Terminal, Inc.

The project was awarded at the proposed concession fee of P3.9 billion, exclusive of all taxes.

The PPA is hoping to complete and inaugurate 31 more port projects before President Rodrigo R. Duterte’s term ends on June 30.

Indonesian adaptation of Pretty Little Liars tackles depression, cyberbullying

Pretty Little Liars Season 2

THE SECOND season of the Indonesian adaptation of the drama series Pretty Little Liars premieres this month on PCCW’s pan-regional OTT video streaming service Viu in its original language and a Filipino dub.

The Indonesian adaptation of the Warner Bros. series is a Viu Original production.

Its first season, which premiered in April 2020, won awards for Best Adaptation of an Existing Format at the 2020 Asian Academy Creative Awards, and Best TV Format Adaptation (Scripted) Award at the 2020 ContentAsia Awards.

Set in Amerta, Bali, the adaptation focuses on four estranged undergrads whose clique falls apart when their queen bee, Alissa, goes missing. The remaining members of the clique receive messages from a mysterious figure named “A” who threatens to expose their darkest secrets.

Directed by Emil Hiradi, the series stars Anya Geraldine (in the role of Hanna), Yuki Kato (Alissa), Shindy Huang (Aira), Caitlin Halderman (Ema), and Valerie Thomas (Sabrina).

The series tackles themes on friendship, female empowerment, body positivity, and the consequences of cyberbullying.

“When we do collaborations like these, we look forward to putting social issues in front of the audience and enable conversations that happen around them,” Varun Mehta Country Manager of Viu Indonesia, said at an online press launch with Indonesian and Philippine media on April 7.

“There is a lot of conversation happening around [depression among young adults] as well. So, cyberbullying and bullying in school is the reason why this kind of depression creeps in,” he said.

“The good part is people are talking about it and what we want to do is we want to continue enabling conversations around topics like this. It’s not a stigma, it is something people can get out of,” Mr. Mehta said.

“Through our content, we want to bring these issues out for awareness and take it further from that,” he said.

Season 2 of Pretty Little Liars is now available on Viu. Episodes dubbed in Filipino are accessible at https://www.viu.com/ott/ph/en-us/vod/432400/Pretty-Little-Liars-S2-Tagalog. The Viu app is available on the App Store and Google Play. — Michelle Anne P. Soliman

Globe’s Asticom in talks for JVs, acquisitions

REUTERS

GLOBE TELECOM, Inc. announced on Monday that its subsidiary, Asticom Group of Companies, is looking to expand its portfolio of businesses through strategic partnerships, joint ventures (JVs), and acquisitions.

The company is currently “in talks with several parties,” Globe said in a statement.

Asticom President and Chief Executive Officer Mharicar Castillo-Reyes revealed that “a number of private equities” have approached the company in the past three months and have raised interest.

“We’re making sure that we find the right strategic partners that will help us grow the business and add value to the solutions we offer to address the needs of our customers,” she added.

Meanwhile, Asticom’s subsidiary Fiber Infrastructure and Network Services, Inc. (FINSI), a solutions provider for the telecom and technology industries, is also open to joint ventures and acquisitions.

“We’re in discussion with several companies for joint ventures. Our main goal is to increase our capabilities, grow the business, and eventually, create a connected nation,” FINSI General Manager Marc Kerveillant said.

Globe announced last week that BRAD, a shared services provider under Asticom, is targeting to cover areas beyond Luzon this year.

Asticom has formed various subsidiaries, including BRAD, Asti Business Services, Inc. (ABSI), FINSI, and HCX Technology Partners, Inc.

ABSI is Asticom’s business process solutions arm, while HCX is a provider of human resources, customer relationship management, and digital solutions.

Asticom is hoping to go public in five years.

Globe Telecom shares closed 0.98% lower at P2,424 apiece on Monday. — Arjay L. Balinbin

BillEase raises $20 million to expand PHL BNPL services

BILLEASE secured $20 million through a funding round to expand its Buy Now Pay Later (BNPL) platform in the Philippines.

The debt facility was granted by UK-headquartered Lendable, which is an emerging market credit facility.

“This facility is a further validation of our business and the platform our team has built over the past few years and helps to firmly position BillEase as the leading BNPL brand in the Philippines,” Georg Steiger, chief executive officer and co-founder of First Digital Finance Corporation (FDFC), which operates the BillEase app, said in a statement.

“We share the same focus on creating financing solutions that serve the emerging consumer segment as the Lendable team and we are excited to work with them to further financial inclusion in the Philippines,” Mr. Steiger added.

The result of the latest funding round follows the $11 million raised in January through Series B equity, with investor participants including BurdaPrincipal Investments, MDI Ventures, and KB Investment, among others.

This brings the company’s total fresh funds to $31 million.

“BillEase has grown tremendously as a business and we are keen to continue supporting their growth trajectory by providing sustainable and better access to financial products,” said Hani Ibrahim, Lendable’s chief investment officer.

Mr. Steiger said the volume of transactions done on BillEase climbed by nearly five times in the first three months of 2021 from a year earlier.

BillEase also turned a profit last year, he added.

The company offers a one-stop platform that offers BNPL, installment schemes, low-cost loans, and e-wallet top-up services. It also provides retailers with payment solutions to attract and retain customers.

Mr. Steiger is bullish on prospects for fintech services in the Philippines amid the population’s rapid adoption of digital transactions during the lockdown and regulatory reforms to help more Filipinos have access to financial services.

“The population is young, tech savvy and largely underbanked. Several regulatory initiatives are coming together to significantly improve market infrastructure — instant retail payment networks, National ID, national credit bureau, digital banking licenses, just to name a few,” Mr. Steiger said.

The central bank wants 50% of all payments done online by 2023. — Luz Wendy T. Noble

Gov’t fully awards T-bills

BW FILE PHOTO

THE GOVERNMENT fully awarded the Treasury bills (T-bills) it offered on Monday as rates moved sideways amid strong demand for short-term debt papers and expectations of aggressive rate hikes from central banks due to growing inflation risks.

The Bureau of the Treasury (BTr) raised P15 billion as planned via T-bills at its auction on Monday as total tenders reached P54.12 billion, nearly four times as much as the program but lower than the P71.25 billion in tenders seen at last week’s auction.

Broken down, the BTr raised P5 billion as planned via the 91-day instruments as bids reached P26.23 billion. The average rate of the three-month T-bill went up by 2.1 basis points (bps) to 1.25% from 1.223% last week.

The government also made a full P5-billion award of the 182-day securities as the offer attracted P15.85 billion in bids. The average rate of the six-month tenor rose by 1.3 bps to 1.568% from the 1.555% fetched at the previous auction.

Lastly, the Treasury also raised P5 billion as programmed from the 364-day debt papers from P11.954 billion in tenders. The average rate of the one-year paper went up by 2 bps to 1.877% from 1.857% a week earlier.

At the secondary market prior to the auction, the 91-, 182-, and 364-day bills fetched rates of 1.2659%, 1.5051%, and 1.7997% respectively, based on the PHP Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

National Treasurer Rosalia V. de Leon in a Viber message to reporters said the BTr made a full award of its T-bill offer as there was strong demand for shorter tenors due to fears of aggressive tightening by the US Federal Reserve.

“Market [was] biased on the short end, with anticipated aggressive Fed actions with combined policy rate hikes and balance sheet runoff, as reflected in Fed minutes,” she said.

A trader said via Viber that demand was skewed towards shorter tenors “given rising concerns on inflation and global central banks’ monetary tightening.”

“We have entered in a cycle of monetary tightening, not just onshore but also globally — therefore, investors are still anticipating for interest rates to rise,” the trader said.

“While there’s still a need for central banks to hike their rates to quell inflation, short-end bonds will continue to be market’s preferred choice of outlet,” the trader added.

Central banks around the world have been tightening their monetary policies to temper inflation despite lingering risks to economic growth.

A Reuters poll last week showed analysts expect the Fed to raise rates by 50 bps each for its May and June review to respond to runaway inflation. These analysts also expect a 40% probability of recession by 2023.

US inflation surged to 8.5% year on year in March, the biggest gain in four decades but still in line with market expectations, amid record high fuel costs.

Minutes of the Fed’s March meeting, where the central bank hiked borrowing costs from near-zero for the first time since 2018, also showed they plan to raise rates several times this year and trim their asset holdings.

At home, the Bangko Sentral ng Pilipinas (BSP) kept benchmark rates untouched for the 11th straight meeting last month but warned it could begin unwinding its pandemic-driven easy policy due to inflation risks. BSP Governor Benjamin E. Diokno earlier said the policy rate could reach up to 2.75% by next year from the current 2%, which is a record low.

Headline inflation was at 4% in March, matching the upper end of the central bank’s 2-4% target. It was quicker than the 3% in February, showing the impact of the surge in oil prices caused by the Russia-Ukraine war.

Meanwhile, a second trader in a Viber message said the auction result came as expected, adding that “demand most likely came from scheduled T-bill maturities.”

The second trader added that yields moved sideways from last week’s auction as the market is still waiting for a “major catalyst.”

On Tuesday, the BTr is auctioning off P35 billion in reissued seven-year Treasury bonds (T-bonds) with a remaining life of six years and three months.

The first trader said demand for the bond offer may be muted compared to Monday’s T-bill auction as investors continue to prefer shorter tenors amid fears over looming Fed and BSP rate hikes and rising inflation.

The BTr wants to raise P200 billion from the domestic market in April, or P60 billion through T-bills and P140 billion via T-bonds.

The government borrows from local and external sources to help fund a budget deficit capped at 7.7% of gross domestic product this year. — T.J. Tomas with Reuters

Meralco Bolts go all out for the equalizer in Game 6, says Black

MERALCO Bolts import Tony Bishop scored 30 points and grabbed 15 rebounds in their 115-110 loss to Barangay Ginebra on Easter Sunday. — PBA IMAGES

By Olmin Leyba

FALLING to a precarious 3-2 situation against nemesis Barangay Ginebra further strengthened Meralco’s resolve to push harder and save its fourth attempt at a breakthrough Philippine Basketball Association (PBA) Governors’ Cup diadem.

“It takes four wins to win a championship and they only won three games so obviously, I’m not giving up, my players aren’t giving up,” said defiant Bolts coach Norman Black, whose troops go all out for the equalizer in tomorrow’s Game 6 at the Smart Araneta Coliseum.

“We still have a chance to tie the series so we’ll work hard the next couple of days to try to fix some of our mistakes (in Game 5).”

The Gin Kings pushed the Bolts to the brink with a 115-110 victory on Easter Sunday, following up on their series-tying 95-84 romp in Game 4 last Wednesday.

The Justin Brownlee-led crowd darlings fired a franchise record-matching 16 triples to gain the upper hand against the Bolts in the pivotal fifth match witnessed by a pandemic-high of 18,251 spectators.

“Amazing shooting game by Ginebra,” noted Mr. Black of their rivals’ 40-of-78 (51.3%) field goal clip and 16-of-34 (47.1%) three-point marksmanship.

“There were a lot of times when we actually played decent defense but they were still able to knock down their threes. It’s hard to beat a team that shoots like that.”

Mr. Black underscored the importance of executing their defensive rotations better next time if they want to extend the series to a do-or-die Game 7.

“We seemed to be one rotation late a lot of times against the offense of Ginebra. We really have to work on that,” he said.

Knowing fully well the Bolts’ fighting spirit and capabilities, the Gin Kings are staying on an even keel and firmly fixed on the task at hand.

“It’s very tough closing out games so for us, we won’t look back or look forward, focus lang sa Game 6 and we’ll see what happens,” said Ginebra star Scottie Thompson, who went a rebound shy of a triple-double in helping the team to its third win with his 19-9-11 outing in Game 5.

The best simulator on the market

Gran Turismo 7 — PLAYSTATION.COM

Video Game Review
Gran Turismo 7
Sony Playstation 5

Ghostwire Tokyo
PS5

Atelier Sophie 2: The Alchemist Of The Mysterious Dream
Nintendo Switch

IT’s a credit to the developers that even those outside of the intended audience find lots to appreciate about Gran Turismo 7. If nothing else, it brings gamers back to a simpler time, when simply basking in the thrill of fast cars roaming in picturesque countrysides could not but be the ultimate objective in and of itself.

In Gran Turismo 7, much of the core gameplay revolves around the speed and maneuverability of the cars you have at your disposal. Once you’re behind the wheel, it’s all up to you to reach your destination in the fastest time possible on whatever vehicle you feel comfortable steering. Each vehicle is unique, not only in looks, but also in handling — which is to say picking the right car is just as important as being able to drive it. With a wide array of vehicles to choose from and different ways to customize them, there are plenty of ways to experience each car as you desire, and to model it pretty much however you’d like it to look.

Once you’re done picking a car, it’s your job to race it. There’s a plethora of different races to enter in Gran Turismo 7, with varying amounts of payouts and rewards to earn for doing well, including cash investments to spend on acquiring a new vehicle, or on pumping up your current one with new attachments and upgrades that can boost its performance.

That really is most of what you’ll be doing with Gran Turismo 7. Race, buy cars, upgrade them, and repeat. With different circuits to run and different tracks to drive in, most of what you’ll be doing might not change, but the core gameplay loop is able to sustain itself just because of how good the game feels. With the hum of your vehicle in your ears and the drone of your engine as you go fast, Gran Turismo 7 gives you more than enough to keep you going. And going. And going. Most of the game revolves around it, and if you’re an avid car lover, there’s nothing better, what with the constant influx of unlocked cars, the myriad customization options, and, finally, the opportunities to test the products of your mind on the road.

Gran Turismo 7’s appeal doesn’t end there. For example, Music Rally pushes you to complete tracks before the songs end. Custom Mode enables you to race however you want to your heart’s desire, letting you tinker with race conditions and alter them as you please. And if you’re feeling a bit competitive, you can peruse the game’s multiplayer mode and test yourself against others online. The game is for you to enjoy as you please, and with it very much focusing on its racing aspects, it does deliver on that part extremely well.

That said, Gran Turismo 7 does have its flaws, mostly in regard to its backend. The game does look beautiful, yes, and it has a very atmospheric feeling when you’re playing it. However, it’s all the other side stuff that really drags it down. Unlocking new cars is difficult, making microtransactions less of an option and more of a solution for desperate players. Occasional server issues likewise spoil the appeal of online play.

Nonetheless, Gran Turismo 7 makes for an extremely enjoyable experience. It’s still the best simulator on the market by far — which is to say it lives up to its billing and more. Highly recommended.

THE GOOD:

• Outstanding graphics and sound design

• Deep selection of modes to play through, with myriad unlockables on tap

• Smooth interface

THE BAD:

• Grinding required for unlocks outside of microtransactions

• Progression system could be better

• Server issues resulting in downtime and progress loss

RATING: 9/10

POSTSCRIPT: Of all the things you can say about Ghostwire: Tokyo, you can’t go wrong with “unique.” After all, you find yourself awash in its potential given its capacity to combine aspects of an open world role-playing game with a mishmash of shooter and horror tropes to spice things up. And, wait, there’s more. Developer Tango Gameworks goes the extra mile with its presentation, throwing in some flashy visuals and setting it in one of Japan’s busiest cities, all while having ghosts and demons stalk you through its streets. It’s exhilarating, tense, and really, really fun.

In Ghostwrite: Tokyo, nightmares become reality as the streets of Shibuya are now steeped in fog and shadow. Playing as Akito, you have one job: to survive this literal ghost town and find your sister. You must dodge and defeat whatever ghosts stand against you, using the different elements at your disposal to dispatch as needed. You’ll scavenge for food in stores, exorcise restless spirits, and help wanting souls meet their maker. These concepts might sound a bit overwhelming, but they’re easy to digest as soon as you grab your controller. While it might seem strange, a lot of its mechanics are based on familiar concepts already present in other first person shooting adventure games.

For starters, combat in Ghostwire: Tokyo is mainly done through the use of elements. You have three at your disposal, and they all act like your standard first-person-shooter weapon roster. Wind, the first element, is your reliable, fast-firing pistol. It’s accurate and able to lay down a barrage of projectiles pretty reliably, and will be your main weapon. Water, the second element, is your high-powered shotgun, dealing incredible damage up-close, especially with upgrades that boost its range and base damage. Fire, the last element, is both your rocket launcher and rail gun, dealing explosive damage if charged up, and piercing regular enemies if fired.

In Ghostwire: Tokyo, you’ll be cycling between the three elements pretty often, and while there’s not much variety in the combat, there is at least a decent mix-up in how the battles play out. Enemies, depending on their type, are often quick on their feet, and fairly aggressive. While you can block their attacks, the damage they deal can get out of hand fairly quickly, and so you’ll be switching between the three elemental types in an effort to keep them at bay and expose their cores, which can be revealed only by dealing enough damage to them. These exposed cores allow for a channeled execution move. While these will dispatch without the expenditure of further elemental magic, however, the channel time leaves you exposed to other enemies, forcing you to always be aware of your surroundings. You’re not invincible while you’re doing it, and the channel time is often just long enough to leave you exposed and out of position, making combat feel like an interesting dance of fighting, repositioning, and executing ghosts at a safe distance.

Ghostwire: Tokyo also gives you the chance to sneak up on and take down your foes with some pretty by-the-books stealth mechanics. While these don’t add much depth to how you can approach battles, the game does account for situations where you want to go silent. The ability to use a bow to snipe enemies from afar or to use silent takedowns on unwary foes helps quite a bit in thinning down the Visitors’ numbers before things go awry.

All told, Ghostwire: Tokyo can be very charming once you get the hang of it, and while its combat pales in comparison to what something like Doom Eternal can offer, it makes up for the seeming shortfall with its excellent environmental designs. The streets of Shibuya are rendered fantastically by the game engine, showing off bright lights and colorful buildings made with much love and detail. In some ways, it feels like taking a virtual tour in one of Tokyo’s streets, and the open world aspect is able to make the explorable areas feel big enough for you to lose yourself in. There are lots of side activities to enjoy, and lots of side quests to take up your time. There are small stores to visit, upgrades to purchase, and collectibles to gather. It’s an open world experience set inside a colorful, neon-lit first-person shooter, and it does its job so well that it’ll hold your attention for hours on end. There’s even some minor verticality to be had with the exploration, with the game letting you grapple onto rooftops for some new side areas to explore.

Combine all these elements with the Japanese horror aesthetics and flashy design, and you have a very charming game with quite a bit of content on hand. The story’s excellent writing draws you in, and its set pieces are a great mix of flashy otherworldly experiences crossed with Japanese horror elements. The side quests and side activities you do help boost your character’s growth, and the ramping challenges you’ll face keep the game from being boring as newer and more dangerous types of enemies come to square off against you.

Sadly, while Ghostwire: Tokyo does a fantastic job at keeping you hooked, it still suffers from issues endemic to open-world RPGs. While the main campaign is just long enough to keep the mechanics feeling fresh, the rest of the side content slowly starts to bog the experience down. It’s not that they’re bad. For the record, they’re very, very good. It’s just that they eventually run out of new mechanics, encounters, and features to keep you going.

Where other games could keep your interest with stellar combat or good side quest design, Ghostwire: Tokyo’s main selling point is its visual flair. Its fancy lights, its creepy enemies, and its enchanting atmosphere are what spur you onward, but these don’t keep their novelty through all the side quests.

Make no mistake. Ghostwire: Tokyo’s main campaign is a blast to run through, and while it might feel a little short compared to other actioners, it’s still an experience that shouldn’t be missed. The visual spectacles it’s able to provide serve as ample attractions in and of themselves. Few games are willing to go through the lengths it does to mix bright, colorful environments with horrific creatures straight out of myth and legend. It’s a celebration of how seemingly disconnected and disjointed concepts can work in tandem with the right designs, and it should make gamers look forward to the inevitable sequel that improves on it.

THE GOOD:

• Excellent graphics, art and environmental design

• Superb combat, with some RPG and open-world elements to enjoy

• Decently long main campaign with lots of side activities to do

THE BAD:

• Combat can be repetitive after a while, with few weapons and options to really spice things up

• Side content gets mundane, especially as it doesn’t share the pacing of the main campaign

• Lack of variety in approaching scenarios

RATING: 9/10

The Atelier games have always exuded an aura of comfort that makes the franchise feel fresh and easy to pick up. Its colorful characters, interesting combat systems, and wholesome themes of family and friendship set it apart from other more melancholic JRPG offerings. True, recent releases in the series have started to delve into far more mature topics. That said, it has steadfastly remained true to its bloodline. Atelier Sophie 2: The Alchemist of the Mysterious Dream arrives with the promise and premise of its forebears, and it bears the weight of expectations brilliantly. It emulates the core experiences of its earlier predecessors, particularly Atelier Sophie: The Alchemist of the Mysterious Book, and more. It brings with it better combat mechanics, an expanded roster to play with, tons of items to use and create, and a strong sense of personality to anchor it to what it does best.

In Atelier Sophie 2: The Alchemist of the Mysterious Dream, the title character finds herself in the strange, alternate world of Erde Wiege, which is fully populated by peoples from different time periods. In order to escape her surroundings and reunite herself with her mentor Plachta, she must do what she does best: create items, and then search and explore nearby areas and dungeons for any materials and clues she can gather. Only by teaming up with others can she really find a way to return to her original world.

In a lot of ways, this concept that underpins Atelier Sophie 2: The Alchemist of the Mysterious Dream is pretty standard JRPG fare. Sophie’s own adventures along with the characters she encounters are all tropes that have been played out before. However, what makes the game shine isn’t the uniqueness of its story, but the sincerity in its writing. Its character moments may sometimes be hit or miss, especially for those who seem to be playing out their stereotypes, but the warm, relaxing pace of its story makes for some easy reading. The side quests you take serve to flesh out your companions, and characters you meet all have their own motivations and drive to them. The main quest serves to fill out the world, which itself feels like a fairy tale come to life, and the entire narrative is driven by its fantastical themes and whimsical moments. It’s almost like a carefully laid out fantasy, and while it’s not a perfect one to lose yourself in, it’s an experience that allows you to just chill and relax, basking in its wonderful art style and its addicting gameplay

In a nutshell, Atelier Sophie 2: The Alchemist of the Mysterious Dream is better than its older siblings. While its narrative might be playing safe, its gameplay has seen some much-needed improvements. The overworld and crafting parts, for instance, have seen improvements. Navigating the world map is easy, with plenty of fast travel points to use to get yourself from area to area at a moment’s notice. Sophie moves at a brisk pace to begin with, and the areas you explore might have their gimmicks, but they’re moderately sized so you won’t really be getting lost in them. You’ll be gathering lots of plants and materials, and these are brought to your Atelier, where you’ll use them to craft important items. You can even boost the crafted item’s quality through its own minigame, and the progression you take is always easy to follow due to the helpful recipe book to get you to find what item you need next.

Bottom line, though, Atelier Sophie 2: The Alchemist of the Mysterious Dream’s combat system is where it really is at its best. The battles themselves are generally fast-paced, but the addition of front row and back row characters as well as the use of Technical Points make them flow even smoother. In combat, your front row characters perform your attacks, while your back row characters support them. Every move you make earns Technical Points that can be used to great effect, from shielding allies to even taking combined turns to further boost your damage. These are small changes, but ones that really help with the pacing once you understand them, allowing you to breeze through your opponents and even letting you be fairly liberal with your skill and item usage. It’s a great combat system to juggle, and one that manages to keep up with enemies later in the game, where you’ll be exploiting weaknesses and bringing better damage types to bear, and having to find a way to deal with shields and elemental handicaps. It’s a deep combat system that isn’t typically present in titles from the Atelier franchise, and one that really pairs up nicely with the game’s visuals.

And then there are the outstanding graphics. No matter what system you play on, Atelier Sophie 2: The Alchemist of the Mysterious Dream looks pretty good. Its environments are fairly tame, ranging from rural farmsteads to ruins and grassy plains, but the art style and its aesthetic are what really catches the eye. Everything in the game just oozes color and charm, with the character and monster art, in particular, looking fantastic. The main characters are all easy to tell apart; they all have their own style so you won’t forget them. Monster design is exemplary. While golem-like beings, birds, and slimes are all pretty normal for a JRPG, developer Gust’s Atelier art style brings them to life in a very cutesy way that feels just at home in their colorful world. If there’s any fault with the aesthetics, it’s mostly in the non-playable characters and areas where the programmers figure you wouldn’t look too carefully. While its main cast and enemies are all brimming with life, supplementary characters don’t have as much attention given to them, and some pop-in does still does occur to ruin some of its visual feast

Overall, Atelier Sophie 2: The Alchemist of the Mysterious Dream does a great job of staying true to its roots, but, at the same time, improving upon them. It excels in areas that help its gameplay flow better while preserving the charm and feel of the Atelier series. It’s completely accessible to play — easy to understand and yet deep enough to be engaging. If nothing else, it proves you don’t need to subvert stories or create new genre-defying gameplay to make a great game. All you need is some heart, a standout art style, and efficient systems in place, and everything else will follow.

THE GOOD:

• Witty, charming, and entertaining characters

• Strong, solid gameplay loop with a lot of content on offer

• Engaging, relaxed fun, with some memorable moments and environments

THE BAD:

• Background NPCs feel lifeless

• Has some framerate and pop-in issues

• Tropey characters in its roster

RATING: 9/10

THE LAST WORD: The crossover action RPG Neptunia x SENRAN KAGURA: Ninja Wars is slated to launch this week on the Nintendo Switch, and in early May on the personal computer via Steam. The Switch eShop is offering a 20% discount for digital preorders. Meanwhile, the Limited Edition version is available on the IFI Online Store. The LE is comprised of a physical copy of the game, The Art of Ninjutsu Hardcover Art Book, an Ukiyo-e Wall Scroll, the official soundtrack, an exclusive trading card, and a steel game case.

Neptunia x SENRAN KAGURA: Ninja Wars is a single-player hack-and-slash RPG where two camps of martial arts disciplines, the Compa and the Honeypa, fight for supremacy in a ruthless competition. Originally released on the PS4 last year, the game’s Switch and PC iterations include an all-new difficulty setting and free Alternate Costume downloadable content.

Singapore aims to be Asia’s busiest international airport

TRAVELERS walk through the transit area at Changi Airport in Singapore. — BLOOMBERG

CHANGI Airport was crowned the world’s best aerodrome for 15 years straight prior to COVID based on its superior traveler offerings and high-tech customer service. Now it’s readying to welcome back visitors en masse, hoping improvements made during the pandemic will cement its status as Asia’s premier aviation hub.

Most of the shops at the two Changi terminals that are operating have reopened and business partners like Singapore Airlines Ltd. and ground handling and catering outfit SATS Ltd. are hiring in anticipation of a travel rebound, seeking to avoid the labor shortage-induced snarls of Australia and Europe. New technology is being applied that’s taking contactless service to the next level.

Such efforts could help Changi become the region’s busiest airport for international travel in 2022, a title that’s there for the taking considering the woes of Hong Kong International Airport, where air passenger traffic has slowed to a trickle under China’s COVID-Zero policy. Restoring Changi, which commands a certain spot in the nation’s psyche, is also vital to Singapore’s economy, with the aviation sector accounting for more than 5% of the city’s gross domestic product and providing around 200,000 jobs.

“Changi is the most liberal airport we have in Southeast Asia right now,” said Mohshin Aziz, director of the Pangolin Aviation Recovery Fund, which invests in aviation-related businesses. “We are in this situation where the difference in policies will determine whether an airport is in the 21st century or in the dark ages.”

Singapore was among the first in Asia to start easing travel restrictions by establishing so-called vaccinated travel lanes that ultimately allowed people from 32 countries to visit without quarantine. From April, the island was opened to anyone who is fully inoculated regardless of where they’re from.

While waiting for footfall pick up, Changi was making behind-the-scenes adjustments. Self check-in kiosks and baggage drops now operate when a person hovers their finger over a screen. Passengers use automated immigration gates that scan faces and irises if those biometrics are registered in a passport. Air conditioning and mechanical ventilation has been installed with hospital-grade filters and ultraviolet sanitization systems, and autonomous cleaning robots use misting to disinfect carpets.

Singapore itself has set aside almost S$500 million ($367 million) to spur a tourism revival.

And travelers are coming back, gradually. Changi handled 1.42 million passengers in the first two months of this year, a jump from 263,000 the same period 12 months ago. That compares with Hong Kong, which handled 157,000 passengers in January and February. South Korea’s Incheon International Airport, ranked No. 1 in Asia for international travel in 2021, processed 675,452 international passengers in the first two months of 2022.

The strict travel restrictions in Hong Kong have meant it’s ceased to function as an international aviation hub, the International Air Transport Association (IATA) said earlier this month. “It’s effectively off the map now, and I think it’s going to be difficult for Hong Kong to recover,” Willie Walsh, director general of IATA, said.

That’s in stark contrast to Changi, which even in the most difficult times kept its gates open to passengers traveling to destinations within Southeast Asia, when most direct flights from other regions had stopped. Transfer passengers — Singapore being a prime transit hub for travelers from Australia and New Zealand going onto Europe and the US or vice versa — accounted for as much as half of traffic at the airport last year, compared with about 30% pre COVID.

The airfield is seeing more travelers as Singapore reopens and is focused on serving them, Changi Airport said in an e-mailed response, declining to elaborate.

On a recent visit one weekday afternoon, around 65% of the shops in Changi’s transit area were open, rising to almost 90% in the public areas of Terminals 1 and 3. Lotte Duty Free, South Korea’s biggest duty free operator and one of the two biggest at Changi, is set to open one of its largest-ever stores at the airport shortly, while Singapore Airlines spent part of the pandemic completely refurbishing its business and first-class lounges at Terminal 3.

While Changi doesn’t have immediate plans to reopen Terminal 4, it plans to restore operations at Terminal 2 in phases later this year. Building works at the previously under construction Terminal 5 remain on hold.

There are still long stretches during the day and night when activity comes to a standstill because very few flights are landing. While 81 of the 91 carriers that used to fly into Changi have restored services, flight frequencies are just 37% of pre-Covid levels. Last year, the aerodrome handled 3.05 million passengers, a drop versus the 68 million in 2019 before countries closed their borders.

Some store operators haven’t been able to hold out. A few in the transit area have handed their operating licenses back to the airport and Changi will look for new retailers to take over the vacant spaces. Singapore’s government has also warned that stricter measures could return if the Covid situation worsens, even though now, more people can eat together at restaurants and masks aren’t mandatory outside anymore.

The government aims to restore passenger volume at Changi to at least 50% of pre-pandemic levels by later this year, up from 15% at the end of 2021. Singapore Tourism Board Chief Executive Officer Keith Tan said earlier this month that the number of short-term visitors more than doubled in March to about 120,000, from 57,000 in January.

An announcement in January that Singapore will resume hosting the Formula One Grand Prix for another seven years after a two-year hiatus was a positive signal, said Gary Bowerman, director of travel and tourism research firm Check-in Asia.

“That’s really given a boost to everybody showing that Singapore means that it’s staying open,” he said. “They’re being realistic. It’s going to take time to rebuild passenger demand.” — Bloomberg