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Q2 slump sharper than initially estimated — PSA

The economy shrank by 16.9% in the second quarter, worse than the preliminary estimate of -16.5%. — PHILIPPINE STAR/MICHAEL VARCAS

By Marissa Mae M. Ramos, Researcher

THE ECONOMY contracted faster in the second quarter than previously estimated, the Philippine Statistics Authority (PSA) reported on Monday.

The PSA said its latest estimate showed Philippine gross domestic product (GDP), which indicates the value of final goods and services produced within a country during a specific period, slumped by 16.9% in the second quarter, faster than the initial 16.5% decline given in August.

The services sector posted a 17% drop in the April-June period, quicker than the initial estimate of -15.8%. Subsectors that posted faster declines based on revised data were real estate and ownership of dwellings (-29.7% from -20.1%); education (-15% from -12.2%); and wholesale and retail trade, and repair of motor vehicles and motorcycles (-13.9% from -13.1%).

Meanwhile, the contraction in the industry sector in the second quarter was revised downward to 21.8% from 22.9%. Slower declines were noted in construction (-30.4% from -33.5%); mining and quarrying (-22.8% from -24.5%); and manufacturing (-20.7% from -21.3%).

Agriculture, forestry, and fishing — the sole major economic sector that posted growth in the second quarter — saw a slight downward revision to a 1.55% expansion from 1.61%.

On the expenditure side, growth in government spending was lowered to 21.8% from the initial 22.1%.

Household consumption was revised to a -15.3% from -15.5% previously.

Exports and imports fell by 35.8% and 37.9%, slower than -37% and -40% previously.

On the other hand, the plunge in gross capital formation was adjusted higher to 53.7% from 53.5%.

The second-quarter 2020 revision comes ahead of today’s release of preliminary estimates for third-quarter GDP.

A BusinessWorld poll of 19 economists yielded a median GDP decline of 9.2% in the third quarter.

The government, through the interagency Development Budget Coordination Committee, expects the economy to shrink between 4.5% and 6.6%, or an average of 5.5% this year.

Lockdowns should be ‘last resort,’ says Chua

THE government’s move to ease lockdown restrictions and further reopen the economy will likely boost growth this quarter, Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said.

In a speech before the 58th Philippine Economic Society Annual Meeting and Conference on Monday, Mr. Chua said strict lockdowns should be the “last resort” in the fight against the coronavirus disease 2019 (COVID-19).

To help the economy recover, he said the economic team had recommended to the Inter-Agency Task Force for the Management of Emerging Infectious Diseases shift its policy “from total risk avoidance to risk management.”

“We proposed, and this was accepted, to consider escalation of quarantine level only as a last resort. So if COVID-19 cases are rising, we will still maintain the current quarantine level and implement stricter protocols, or more localized quarantine instead of putting an entire region or province in quarantine,” Mr. Chua said.

Nearly all economic activity was halted during the strictest form of lockdown from mid-March to May, pushing the Philippines into its first recession in nearly 30 years. Official data released on Monday showed the economy shrank faster than expected in the second quarter to -16.9% from the previous estimate of -16.5%.

Mr. Chua said the economic team’s recommendations included increasing the capacity of mass transportation, allowing businesses to run at 100% capacity, boosting health systems, shortening curfew hours, and adopting localized quarantines if COVID-19 cases spike.

“Hopefully with the changes that you are seeing in the last quarter, these (looser restrictions) will have a better impact on our fourth-quarter GDP (gross domestic product) growth,” Mr. Chua said.

Former Socioeconomic Planning Secretary Ernesto M. Pernia, who stepped down from his post in April, said the government should spend more to pump-prime the economy.

“On fiscal stimulus, it should be a ‘demand stimulus’ because what’s needed is to get the spending going again and also to get this micro, small and medium enterprises functioning, just to keep them alive,” he said.

Mr. Pernia also said this is not the right time to implement a reduction in corporate income tax to 25% from 30% as companies may not use the tax savings to spend now but instead put them into “precautionary reserves.”

Nndiame Diop, World Bank’s country director to the Philippines, said they expect the economy to contract by 6.9% this year, which translates to P2.6 trillion worth of foregone revenue because of the pandemic.

“The coronavirus crisis has negatively impacted the lowest earning families and the small businesses. Those who make more were better able to cushion the blow and had more resources to restart as the economy opened back up,” he said.

For the country to return to its growth path, Mr. Diop said the government should focus on controlling the virus, maintaining coordinated macroeconomic policies, boosting infrastructure spending and eventually proceed with structural reforms.

Curbing the spread of the virus remains key in economic recovery as this boosts consumer and business confidence, he said. State spending on infrastructure projects would create much-needed jobs and stimulate economic activity, and address infrastructure gaps. 

Meanwhile, the government and Bangko Sentral ng Pilipinas (BSP) should also coordinate in deploying the needed fiscal boost.

“Fiscal agility should be maintained to continue protecting the poor and vulnerable because the recovery in incomes and jobs is likely to be gradual even if GDP rebounds. Support to poor households is particularly critical to avoid disinvestment in human capital,” Mr. Diop said.

“No country can afford a simultaneous unwinding of both fiscal and monetary support, thus coordination of fiscal and monetary policies will remain critical in the next few years,” he added. — Beatrice M. Laforga

Meralco rates drop in Nov.

Power rates will go down this month, Manila Electric Co. said on Monday. — PHILIPPINE STAR/MICHAEL VARCAS

TYPICAL HOUSEHOLDS can expect their monthly electricity bill to go down by P8 in November, after Manila Electric Co. (Meralco) announced a cut in overall rates due to a reduction in power generation charges.

In a statement, the distribution utility said power rates inched down by P0.0395 per kilowatt-hour (kWh) to P8.5105 kWh, the third-lowest rate since September 2017.

“This month’s overall rate is also a net rate reduction of P1.35 per kWh since the start of the year,” Meralco said in a statement.

The decrease means households consuming 200 kWh, which account for the bulk of residential customers, will enjoy an P8 cut in their power bills. Households consuming 300 kWh, 400 kWh and 500 kWh will see a reduction of P12, P16, and P20 respectively in their bills.

The generation charge fell by P0.0215 per kWh to P4.2018 per kWh this November. Meralco attributed the drop in generation charge to the reduced rates from the Wholesale Electricity Spot Market (WESM), and improved supply.

“The Luzon grid’s power supply situation improved in October, as demand decreased due to weather disturbances and there was less generation capacity on outage,” Meralco said.

The cost of power from Independent Power Producers (IPPs) slipped by P0.0842 per kWh as Malampaya natural gas prices fell due to its quarterly repricing and the slight appreciation of the peso against the US dollar.

Charges from Power Supply Agreements (PSA) increased by P0.2118 per kWh, after the forced outage of the 414-megawatt (MW) San Gabriel combined cycle power plant in September.

Meralco said WESM, IPPs and PSA accounted for 12%, 35%,and 53% of its energy requirements, respectively.

Meanwhile, transmission charges, taxes and other charges went down by P0.0180 per kWh for residential customers.

The collection of the Universal Charge-Environmental Charge, which stood at P0.0025 per kWh, was still suspended, as previously directed by the Energy Regulatory Commission (ERC).

Meralco’s distribution, supply and metering charges remained unchanged for 64 months, following registered reductions in July 2015.

Meralco said it does not earn from pass-through charges, such as the generation and transmission charges, while taxes and public policy charges are remitted to the government.

In compliance with the ERC directive, Meralco said it will not disconnect any accounts that are unable to pay their bills until Dec. 31, 2020. This applies to consumers with a monthly consumption of 200 kWh and below.

“For all other customers, consuming 201 kWh and up, Meralco will be complying with ERC’s advisory stating that a minimum of 30-day grace period will be given on all payments falling due within the period of Enhanced Community Quarantine (ECQ) and Modified Enhanced Community Quarantine (MECQ), without incurring interests, penalties, and other charges,” it said.

Metro Manila is currently under a general community quarantine until Nov. 30.

Unpaid balances that remain after the 30-day grace period should be made payable in three equal monthly installments without incurring interests, penalties and other charges, Meralco added.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

Telcos’ capex to rise by up to 25% in 2021 — Fitch

By Arjay L. Balinbin, Senior Reporter

THE capital expenditure (capex) of the “incumbent” telecommunications companies is expected to increase by up to 25% next year, driven by regulatory pressure and the planned commercial launch of telco startup DITO Telecommunity Corp. in March, Fitch Ratings said.

In its latest non-rating action commentary, Fitch Ratings said: “We forecast the incumbents’ capex will increase by 20%-25% in 2021.The Philippines has among the highest capex/revenue ratios in Asia-Pacific, at around 40%.”

The credit rating agency noted both PLDT Inc. and Globe Telecom, Inc. will be “accelerating their network rollout in mobile and fiber broadband in the coming quarters,” ahead of the commercial launch of DITO Telecommunity, which targets to cover “37% of the national population over the next six months.”

Ernest L. Cu, president and chief executive officer of Globe, said at a briefing last week that the Ayala-led telco would build fiber-to-the-homes “more aggressively” in 2021 to address the increasing demand.

Also last week, PLDT said in a statement that it was aiming to extend its current 395,000-kilometer footprint “by another 81,000 kilometers.”

Smart Communications, Inc. also intends to add “about 2,000 cell sites next year,” PLDT added.

Fitch Ratings also expects the telco sector’s revenues to grow “by mid-to-high single digits” next year, “driven by fast-expanding home broadband services and localized competition in mobile.”

PLDT saw its attributable net income for the third quarter grow 95% to P7.41 billion. Its revenues increased 10% to P46.49 billion, driven by the spike in customer demand for digital services amid a pandemic crisis.

Meanwhile, Globe saw a 22% decline in its attributable net income for the third quarter to P4.39 billion.

Globe’s service revenues declined 3% to P36.68 billion, driven by the sustained drop in traditional voice and mobile SMS revenues.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

D&L Industries sees sustained recovery until next year

By Denise A. Valdez, Senior Reporter

D&L Industries, Inc. is hopeful to see better results in 2021 as businesses learn to adapt better to government measures against the coronavirus pandemic.

The listed manufacturer of food ingredients, specialty plastics and chemicals reported on Monday a net income of P573 million in the third quarter, lower by 7% from the same period a year ago, but double the P287 million it recorded the previous quarter.

In a virtual media briefing, D&L President and CEO Alvin D. Lao said the company has been steadily improving after the challenging first semester, and is optimistic that the uptrend will be sustained until the end of the year.

“We’re optimistic about [the] fourth quarter. We think the growth we saw in the third quarter will most likely continue as more people [get used to the pandemic],” Mr. Lao said.

“In 2021, kasi wala na yung (because we’re likely to eliminate the) very bad second quarter, performance should be better than 2020. But it’s not clear yet if we can get to the same level as 2019,” he added.

The company posted P5.75-billion sales during the three-month period, down 4% from a year ago. Exports contributed P1.8 billion or 32% to total sales, up 11 percentage points from 21% in third quarter 2019.

By business segment, net income from the chemicals business (down 2% to P226 million), specialty plastics (down 0.5% to P135 million) and consumer products (up 72% to P89 million) have all reached close to or beyond their levels in the same period in 2019. However, the food segment continued to struggle, posting a net income 38% lower at P155 million.

Mr. Lao attributed this to the altered consumer habits, as many people still would not or could not go out because of the ongoing pandemic. He noted many restaurants are still either closed or on limited capacity.

For the nine months beginning January, D&L’s net income is down 32% to P1.37 billion, as sales fell 4% to P15.92 billion.

Net income in three business segments declined for the nine-month period: food ingredients by 52%, chemicals by 24%, and specialty plastics by 27%.

The consumer products segment, which accounts for revenues from the sale of alcohol and disinfectant products, was the only one to see growth, with its net income up 38% year-on-year.

To support growth, D&L continues to invest in the expansion of its 26-hectare plant in Batangas, which is scheduled to finish construction by end-2021. The company has so far spent P1.72 billion for capital expenditures this year, already exceeding its end-2019 spending of P1.53 billion.

D&L previously said it was targeting above P1 billion earnings in the second half of 2020. Its earnings in the first half reached P802 million, down 43% from last year.

Shares in D&L at the stock exchange closed at P6.63 each on Monday, up nine centavos or 1.38% from the last session.

Mass housing firm 8990 posts 31% profit climb on record revenues

EARNINGS of mass housing developer 8990 Holdings, Inc. jumped 31% to P1.82 billion in the third quarter on the back of record-high quarterly revenues amid the coronavirus pandemic.

In a regulatory filing on Monday, 8990 said it generated P4.83 billion revenues in the July-to-September period, up 38% from the same period a year ago.

“After we felt the impact of four consecutive months of lockdown in the first half of this year, I am happy to report that we registered a very strong third quarter, our highest quarterly performance in the 17 year history of 8990,” 8990 Acting President and CEO Alexander Ace Sotto said in a statement.

“Our performance for this period shows the resilience of the affordable housing sector and affirms the need to fill the ever-growing housing backlog in the Philippines,” he added.

Real estate sales added P4.83 billion to the company’s revenues, while rental income contributed P2.85 million. These offset the P28,393 losses that came from its hotel operations.

Year-to-date, 8990’s attributable net income stood at P3.31 billion, down 21% from the same period last year. Revenues likewise slid 7% to P9.74 billion.

The company said the declines are due to its weak second quarter, which can be traced to construction challenges in the first half of 2020. At the time, the coronavirus-related lockdown in the country was stricter.

At the end of the third quarter, 8990 was able to deliver 3,083 units of affordable housing, bringing its nine-month sales to a total of 6,794 units. It noted the projects delivered in the third quarter almost match six months’ worth of homes sold.

Most of these projects, or 53% of the total, are located in Luzon. Some 27% are in Visayas and 20% in Mindanao. About 53% are horizontal projects, while 47% are vertical projects.

“This global pandemic has added pressure to businesses in all industries including ours. Since March of this year, we have been working on adjusting to this new reality by closely monitoring and managing our liquidity, strengthening our organization, and finding better ways to reach out to our existing and potential buyers,” Mr. Sotto said.

Shares in 8990 at the stock exchange picked up 24 centavos or 3.12% to close at P7.94 each on Monday. — Denise A. Valdez

DLI’s tower set for partial opening

DAVAO CITY — Damosa Land, Inc.’s (DLI) new office building, the 17-floor Diamond Tower, is ready for partial opening with more than 92% of the construction and finishing work done.

“We will complete the construction by next month but we are able to accommodate locators as early as now,” DLI First Vice-President Ricardo F. Lagdameo said in an interview via Messenger.

He said while they will be completing the project at what is probably the “toughest time for the industry,” it will also mean the company will be ready for investors when they consider or resume plans for setting up in Davao.

Part of the building’s 1,800-square meter office space is allocated to DLI, its mother firm Anflo Management and Investment Corp. (Anflocor) of the Floirendo family, and global office space provider Regus, which already has a partnership with the company through another building.

“We have roughly 4,500 that’s already allocated to Anflocor, Damosa Land, Regus, and another tenant,” Mr. Lagdameo said.

The Diamond Tower is located within the Damosa IT Park, an accredited special economic zone, which already houses two other buildings occupied mainly by business process outsourcing (BPO) firms.

The new building is targeted for more BPOs, financial service companies, and “traditional” offices.

He added that DLI will be constructing a carpark building within the Damosa complex in anticipation of the increased vehicular and people traffic. — Maya M. Padillo

Jollibee swings to P1.58-B loss as pandemic hits sales

JOLLIBEE Foods Corp. (JFC) swung to a P1.58 billion net loss in the third quarter, a reversal of its P1.67 billion profits a year ago, as it continued suffering from dampened sales due to coronavirus-related restrictions.

In a stock exchange disclosure on Monday, the fast food chain operator said its revenues in the July-to-September period dropped 31% to P29.97 billion versus year-ago figures.

Its system-wide retail sales, which account for sales JFC made through company-owned and franchised stores, fell 29% to P40.59 billion.

On a year-to-date basis, JFC’s attributable net loss stood at P13.54 billion, a turnaround of its P4.18-billion attributable net income in the prior year. The company linked the loss to sustained challenges from the coronavirus pandemic.

Revenues in the nine-month period slid 27% to P92.73 billion. System-wide retail sales declined 26% to P126.42 billion.

JFC said the pace of its recovery varies depending on the location of its operations, such that stores in developed countries bounce back faster than those in emerging markets.

Across the globe, JFC has reopened 93% of its store network as of end-September. It has permanently closed 339 stores, of which 118 are in the Philippines and 221 are abroad.

The company is allocating P7 billion to transform its business, which involves the rationalization of its store network, store staffing, supply chain, and support groups. Minus the 339 closed stores, some 168 stores are still in the pipeline from the company’s target of shutting down 507 stores this year.

JFC is also opening new stores in new locations, reaching 180 opened stores in the past nine months of 2020. Forty-eight of these are located in the Philippines, while the other 132 are overseas.

“Our business is recovering from the pandemic in different parts of the world, some faster than others… We are now focusing our effort in rebuilding the business in a changed environment,” JFC President and CEO Ernesto Tanmantiong said in the statement.

“While the negative impact of the crisis is still affecting us, as we reopen stores, we are introducing new products, resuming strong marketing campaigns, strengthening our systems and infrastructure particularly for digital connections with our customers and for off-premise consumption of our products and opening of new stores mostly in our international business,” he added. 

JFC has 3,247 stores in its global network as of end-September. It operates in the Philippines, China, Vietnam, Brunei, Hong Kong, Singapore, Macau, Malaysia, United States, Canada, Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Bahrain, Oman, Italy, United Kingdom, Guam and Indonesia.

The company handles brands such as Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King, PHO24, Yonghe King, Hong Zhuang Yuan, Dunkin’ Donuts, Highlands Coffee, Hard Rock Cafe, Smashburger and Coffee Bean and Tea Leaf.

By next year, JFC targets to generate positive operating income from Smashburger, Coffee Bean and Tea Leaf and parts of the SuperFoods Group.

Shares in JFC closed at P198.90 each on Monday, improving P2.10 or 1.07% from the last session. — Denise A. Valdez

How K-dramas are made

NO ONE can deny the current popularity of Korean dramas in the Philippines and the rest of the world. In fact, as an executive of the Korean Creative Content Agency — a government agency that oversees and coordinates the promotion of Korean content — put it, “Korean dramas have become their own genre.” But what does it take to create a Korean drama and what contributes to its global popularity?

A Korean producer boiled it down to two reasons: excellent writing and the resonance of similar cultural values (at least in Asia).

“One big [factor] in the competitiveness of our dramas are excellent writers. Thanks to them, Korea has produced many dramas in different genres through various platforms that blurs boundaries between traditional and new media channels,” Kim Hee Yeol, vice-president of drama production for Pan Entertainment and vice-chairman of the Korean Drama Production Association, said during a webinar hosted by the Korean Cultural Center and Bonifacio Global City (BGC) Arts Center on Nov. 6.

The two-day webinar was held on Nov. 6 and 7 and focused on topics such as what makes Korean dramas popular and how they are written. The webinar included a roster of a Korean drama executive, an executive from the Korean Creative Content Agency (KOCCA), a screenwriter, and two Filipino directors and writers, Laurice Guillen and Jose Javier Reyes.

“Our creativity appeals to the global citizens and specifically cultural similarities between Korea and the Philippines works best to attract more audiences from [the Philippines],” Mr. Kim said before adding that ideas such as filial piety and good versus evil are “the basic [concepts] that attract attention from other Asians.”

Looking back on the history of Korean drama, Lee Young Hoon, chief of the broadcasting industry team of KOCCA, said in the same webinar that they attribute the rise of Korean drama to Winter Sonata, a 2002 series starring Choi Ji Woo and Bae Young Joon. The series became so popular that Mr. Lee said “it became a social phenomenon,” especially in Japan where it spawned an anime adaptation and a stage musical.

Mr. Kim was one of the producers of Winter Sonata.

Mr. Lee also mentioned Jewel in the Palace (2003) starring Lee Young Ae as another series that propelled the Hallyu wave (a term used to describe the popularity of Korean content and culture in the world).

The show, he said, spurred interest in Korean culture and food as traditional Korean cuisine was the focus of much of the series.

While video games are considered “the number 1 export content” of South Korea, earning nine times more than broadcasting does, Mr. Lee noted that “the influence of [Korean dramas] is bigger” because they make viewers want to visit South Korea, visit the sites where the shows were shot, and try the food shown in the shows.

KOREAN DRAMA PRODUCTION
But what does it take to create a show? According to Mr. Kim, producing a show involves 17 different steps, seven of which are for pre-production and planning and 10 for production itself.

Each production takes months — sometimes years — to develop from idea to screen, and shows are typically produced by independent production companies instead of broadcasting companies.

Pan Entertainment, which Mr. Kim is a part of, has a pool of 35 writers, though they do hire new writers every year. The production company produces five dramas a year.

Each show is given over to a main writer who is responsible for writing the series, with several assistant writers who assist with research and proofreading.

“[Main] writers should carry out writing the drama,” Kim Young Yoon, drama script writer and executive director of the Korea TV & Radio Writers Association, said in a webinar on Nov. 7, before adding that assistant writers are not allowed to write parts of the script and a main writer who delegates writing the script to their assistant is “not professional.”

Ms. Kim explained that the world of Korean writers is one where only the best survive as in the Broadcasting Writers’ Education Centre (the writing institute of the Korea TV & Radio Writers Association), only admits 350 candidates per enrollment season and those that do end up working as writers are whittled down to 7 writers.

The center, Ms. Kim said, is responsible for “producing 90% of screenwriters in Korea.”

Most of the time, she said, writers pitch their own stories and develop them for production, though sometimes broadcasters and production companies pitch popular webtoons for adaptation. This is a very involved process as many writers immerse themselves in the occupations of their character (helping out at hospitals if it’s a medical drama, etc.) to ensure that they get the nuances of the job right.

After the idea and the script are formed, Mr. Kim of Pan Entertainment said they pitch the script to broadcasting networks or streaming services such as Netflix. Usually, he said, networks ask to cast one or two “special grade” actors and several “grade A” actors to ensure viewership.

“Special grade actors” are considered the top-tier actors in South Korea. Mr. Kim said currently there are about 3,000 actors in South Korea, just 40 of whom are considered “special grade,” and 60 who are considered “grade A.” “Special grade actors” are guaranteed a pay rate of between $89,000 to $178,000 per episode, though for productions specifically made for streaming platforms the rate can go as high as $267,000 per episode. “Grade A” actors meanwhile are paid between $17,800 to $44,500.

Though Mr. Kim did not name which actors are considered “special grade,” a July article in The South China Morning Post noted that Kim Soo Hyun (of My Love from the Stars fame) earns $165,000 per episode and is considered the highest-paid actor in South Korea. Also included in the top-paid list are Hyun Bin ($84,000) and So Ji Sub ($84,000). A similar list by Preview.ph noted that Jun Ji Hyun (also from My Love from the Stars) earns $84,000 per episode, making her the highest-paid actress in South Korea. The list also includes Lee Young Ae ($83,000) and Song Hye Kyo ($42,000).

“The reason we pay this expensive guarantee is because it is the best way to guarantee very stable and high viewing rates and also to guarantee advertisement revenue,” Mr. Kim said.

Writers are also graded and their pay reflects that as Mr. Kim said that “special grade” writers — there are 50 of them — are paid a script fee of $445 per 10 minutes and $311 for every episode.   

For a drama that has 16 episodes, eight episodes are typically shot and produced before the show is broadcast and the remaining episodes are shot while the show is already broadcasting.

While the writers and production company do keep track of ratings and audience comments on shows, Ms. Kim said that as writers they are “not swayed by the feedback of audiences and ratings,” adding that a character who is supposed to die but who is popular with the show’s audience will still die — though they can change “minor things” in response to feedback.

“Minor things can be changed like more popular characters getting more screen time,” she explained.

The popularity of Korean dramas, Ms. Kim said, has emboldened Korean writers to be more creative in the way they tell their stories because their market now goes beyond South Korea’s shores. She admitted that writers used to limit themselves to stories and genres that they knew would appeal to South Korean audiences, but now they can have a wider variety of stories and genres because “we are now working for the global market.” — Zsarlene B. Chua

AboitizLand reservation sales surge amid lockdown

ABOITIZLAND, INC. reported its average monthly sales have exceeded pre-pandemic levels, despite the ongoing quarantine restrictions.

In a statement, the real estate arm of the Aboitiz group said reservation sales for the months after the community quarantine averaged about 80% of its original targets, and is now on track to exceed sales in 2019.

AboitizLand attributed the strong sales to “the impact of innovative selling techniques and the shifting preferences of property seekers.”

“We are seeing sustained demand for our residential developments despite the limitations brought about by the pandemic. We are attributing this to a shift in our customers’ preferences towards houses and lots in next-wave cities, as bigger living areas, open spaces and amenities become more essential for work-life balance for people in quarantine,” David L. Rafael, AboitizLand president and CEO, was quoted as saying in a statement.

The company has benefitted from a shift in residential real estate preferences, as home buyers increasingly prefer properties in suburban locations. AboitizLand’s residential developments are located in emerging growth centers in central Luzon, Batangas and Cebu.

“Our residential developments are all borne out of a clear understanding of the market’s desire to live better and more sustainably. They are characterized by a superior masterplan with signature features like greenbelts or natural green open areas and a network of walkable spaces and amenities. We believe that this is what people are looking for right now,” Mr. Rafael said.

AboitizLand was one of the first developers to take their operations online and offer end-to-end, digital-based homebuying amid the lockdown.

The perfect testing ground

VIDEO GAME REVIEW
RPG Maker MV
Nintendo Switch

Undead Darlings ~no cure for love~
Nintendo Switch

Tennis World Tour 2
PlayStation 4 Pro

Vampire’s Fall: Origins
Nintendo Switch

Code Vein
Xbox One, with cross-play function on the PC

Ancestors: the Humankind Odyssey
Personal Computer (via Steam)

RPG Maker should not be unfamiliar to anyone interested in game development. The handy software is, at its heart, a game-making system that allows interested parties to use premade assets in making their own titles. One only has to take a look at the Steam Store and see the plethora of RPG Maker games available.

RPG Maker MV is no different, and while it may look like just the latest release in a long series from Kadokawa Corp., it offers considerable variety and provides gamers with myriad choices on the Nintendo Switch.

Certainly, RPG Maker MV is a pretty robust piece of software. The tools it lets its players use, while relatively more limited in comparison to those found in the all-encompassing personal computer version, are actually quite flexible in nature. From editing map tiles to programming events to dialogue boxes and even to character sprites, the Switch release has more than enough to keep gamers immersed for hours on end. In the hands of those with talent, perseverance, and vision, it can, and should, serve as the perfect gateway to game development.

If there’s anything RPG Maker MV lacks, it’s a proper tutorial. There’s one at the start, but gamers won’t be able to go back to it in a pinch once it’s done. And considering the depth and breadth of programming variables at the disposal of would-be developers, what’s tackled doesn’t even come close to putting newbies in position to hit the ground running. It’s as if Kadokawa understands that commitment to the craft necessitates self-learning. The good news is that creations by other users of the title can be checked and played and, most importantly, serve as sources of knowledge and inspiration. The sense of community is underscored since acceptance of work done comes by positive feedback from others, who will also benefit from the process.

Not counting the lack of in-game guidance, RPG Maker MV has other very clear drawbacks. For instance, the available assets on hand are all stock assets, so multiple game creations will, at some point, need to reuse them between games, thus possibly leading to a “same, same,” “been there, done that” situation. RPG Maker likewise remains inherently clunky, so while the software is adept at manipulation, the process invariably gets complicated, especially when using the Switch’s controls. Past the learning curve, though, it provides ample rewards. Second nature comes with a little perseverance.

In sum, RPG Maker MV is a can’t-miss affair for those who want to dip their toes in game development. For aspiring video game developers, it’s pretty much a must-have, serving as the perfect testing ground to gauge commitment to turning endeavor into profession and committing to far more expensive software.

THE GOOD:

• Extremely flexible as a design tool, allowing would-be developers to create role-playing games as they please

• Tons of options on offer

• Games produced off it are actually playable and compelling

THE BAD

• Inherently clunky

• Switch controls a hurdle in getting used to the software

• Lack of an in-depth tutorial

• Relatively limited amount of stock assets to play with

RATING: 8/10

POSTSCRIPT: A look at the history of Undead Darlings ~no cure for love~ is all gamers need to know that it’s a labor of love. Not even a couple of failed Kickstarter campaigns managed to deter developer Mr. Tired Media from completing a project its founders, formerly of Nippon Ichi Software America, first conceived in a Sta. Ana, California, café eight years ago. For all the setbacks, Ry-guy and NickyD were propelled by self-belief and persevered, and, upon their transfer to Seattle, Washington, found others who shared in their goals. Full-scale development followed, and was rewarded by Valve’s support for a prospective release on the personal computer via Steam.

Considering the road Undead Darlings ~no cure for love~ trekked, it’s not without irony that the Nintendo Switch version wound up being offered ahead of any other adaptation. That said, the good news is that Mr. Tired Media has proven true to its East-meets-West vision with an outstanding presentation that is in equal parts a visual novel, a dungeon crawler, and a role-playing game. It has gamers invested in the efforts of Reginald “Reggie” P. Happenstance to keep safe the cure for a zombie pandemic plaguing the world. As he tries to find a way to mass-produce the cure his scientist father concocted, he leans on the assistance of longtime friend Pearl and a handful of other undead women whose sense, sentience, and sensibilities likewise remain intact.

What follows is a delightful romp that mixes VN and RPG elements with style. Striking hand-drawn visuals complement the excellent writing in Undead Darlings ~no cure for love~. And amid the humor that pervades the narrative, gamers are tasked to invest in relationship-building while exploring dungeons and engaging in combat. They’re all intertwined, as the characters have unique attributes that shine and help maximize turns in battles. And, make no mistake, the formation of the right parties for the right occasions is crucial; enemies are hard to beat, even early on, so proper knowledge is essential to victory.

Needless to say, gamers will find most of their time spent traversing floor after floor in typical dungeon-crawling fashion. Thankfully, Undead Darlings ~no cure for love~ features a healthy variety of locations, as well as of psychedelic enemies, so there’s no danger of ennui setting in. Meanwhile, the story progresses quite nicely, with Reggie learning more about, and getting closer to, his companions. In the process, he winds up coping with the challenges more efficiently, unlocking combo skills and making better use of the Exponential Exploitation mechanic in combat.

All told, Undead Darlings ~no cure for love~ proves well worth its $29.99 price tag. Available as a digital download on the eShop, it comes in at 3.2 gigabytes, hefty by the standards of independent titles. The file size is put to excellent use, and replay value comes in the form of multiple endings and, for completists, of collectible items. It’s quirky and fun, and figures to provide hours upon hours of enjoyment that roundly show off Mr. Tired Media’s efforts.

THE GOOD:

• Well-written storyline and dialogue

• Visually appealing

• Colorful characters of substance

• Deep combat mechanics

THE BAD:

• Uneven voice acting

• Battles already difficult from the outset

• Quality of Life issues

RATING: 9/10

Big Ant Studios seemed to be aiming for authenticity when it developed Tennis World Tour 2, and, to its credit, the game does provide realistic gameplay. Groundstrokes, the meat and muscle of the sport, feel impactful, compelling gamers to make choices on the fly. Precision or power? Setting up the point or going for the kill? The depth of the decision-making gives the title the gravitas to overcome its missteps and do a remarkably good job at mimicking actual competition.

In Tennis World Tour 2, gamers are given the choice to pick their favorite player or create their own from scratch. They can either invest no small measure of time in the game’s career mode and become the most successful player alive or just go set up a one-and-done match offline or online using marquee names. That’s pretty much it in a nutshell. It aims to live and breathe tennis, and the effort shows.

Admittedly, Tennis World Tour 2 is far from perfect. Graphics-wise, it doesn’t show its best. On the PlayStation 4 Pro, it looks serviceable, mostly propped up by its excellent lighting, atmosphere, and background design (which, while simplistic, shows a surprising amount of care). Meanwhile, the character models could be much, better; for gamers who put a premium on visuals, the effect can be a little jarring, especially when seen up close.

Thankfully, appearances aren’t the end-all and be-all of sports video games. So while Tennis World Tour 2 doesn’t look too hot, the gameplay props up its value considerably. Movement is slow and deliberate, albeit clunky; quick changes in direction make for jerky animations. On the plus side, gamers will find themselves amply rewarded when they serve and hit well, and then score points, whether through a well-constructed strategy or a fortuitous in-the-moment tactic. It captures the essence of tennis pretty well, and can pretty much hold attention until the matches are done.

Significantly, Tennis World Tour 2 boasts of a fairly substantial career mode, with variables such as training and preparation taken into account as gamers move to improve their character’s standing. There is also the option to purchase additional content to unlock official tournaments and stadia, as well as include the sport’s legends on the roster of available players, although at not inconsiderable cost.

On the whole, Tennis World Tour 2 does what it sets out to do. It’s bogged down by low resolution, but nonetheless provides compelling gameplay. And considering the dearth of titles catering to the sport, it proves to be a welcome addition for adrenaline junkies out for vicarious success.

THE GOOD:

• Compelling gameplay

• Fairly accessible and easy to play form the get-go

• Decent selection of marquee name

• Deep career mode

THE BAD:

• Character models could be much, much better

• Low-resolution graphics

• Quick changes in direction make for jerky animation

RATING: 7.5/10

Vampire’s Fall: Origins is technically the second offering in the Vampire’s Fall series, but it might as well have been a standalone title given its independent storyline and superior interface. In fact, it hews closer to Diablo II in look and feel, deliberately done as an ode to the computer role-playing games of old. The tone, art style, and handling should prove familiar to those steeped in Blizzard North’s seminal work at the turn of the century.

Developer Early Morning Studio does a great job of porting over the mobile game to the Nintendo Switch. Perhaps because Vampire’s Fall: Origins takes on an isometric view, it doesn’t push the hardware to present its dour, dark, decaying aesthetics. Meanwhile, it boasts of smooth and easy-to-understand mechanics. And coming from its original free-to-play release, it does well to eliminate the myriad microtransactions in the console version without sacrificing fairness.

Not unlike most multimedia online role-playing games, Vampire’s Fall: Origins’ plot is pretty much middle of the road. After going through typical character-creation choices at the start, gamers are treated to a backstory told through still images and text: The death of the kingdom’s ruler and absence of a successor has the Witchmaster, in command of dark magic and a horde of followers, planning a takeover. In Vamp’ire, one of the towns slated to be affected, lives the controllable character, who signs up to be part of the organized defense. Training sequences, which double as tutorials, follow, and set up what turns out to be an adventure-filled exploration of an open-world setup.

Interactions with townsfolk and other non-playable characters are standard, if occasionally humorous, fare, and lend to further appreciation of the overarching narrative. Where Vampire’s Fall: Origins distinguishes itself is in its randomized combat stages, where gamers need to strike a balance in the use of their character’s basic (“Weapons”) and special (“Control” and “Instinct”) skills. Side quests serve as level-up opportunities through the acquisition of either battle experience or actual gear. Note, however, that no small measure of grinding is required, as the game’s degree of difficulty rises, and steeply, without warning.

In sum, Vampire’s Fall: Origins proves well worth its $12.99 price tag. While no audio-visual marvel, it succeeds in presenting cues and effects consistent with its tenor. More importantly, it boasts of a complex but not complicated combat design that figures to keep gamers engaged. And because it plays without any technical glitches on the Nintendo Switch, it manages to meet its principal objective: The journey and not the destination is what matters most. Recommended.

THE GOOD:

• Well-done homage to RPGs of old

• Smooth interface and easy-to-understand controls

• Excellent turn-based combat design

• Compelling, humor-underpinned, side quests

THE BAD:

• Grinding required

• Online options not ported over

• No audio-visual marvel

RATING: 8/10

The Souls-like subset of the action role-playing game genre definitely has a lot of fans. While the borderline-insane levels of difficulty titles in this subset present aren’t for everybody, those who have the gumption to stick around for the payoffs experience a certain catharsis in imbibing their unique lore, exploring their labyrinthine environments, and ultimately overcoming their Sisyphean hurdles.

Bandai Namco’s Code Vein is one such release, pushing many of the buttons that any Dark Souls game does, albeit with an anime/rpg aesthetic. Players take on the role of an unnamed character of their making who suddenly wakes up in a devastated world. There, life exists as a hollow shell of itself, with surviving denizens exhibiting sudden vampiric urges to feast on human blood. Under this backdrop, the central figure is tasked with taking up arms to defend himself and his companions, unveil the mysteries behind the disaster, and ultimately fight off the darkness that has overcome the world.

Right off the bat, Code Vein starts off pretty strong. The art style, when combined with the serious tone of the story, does wonders to make the setting feel alive. Everything — from the characters to the monsters to the bleak, dilapidated environments players are forced to traverse — oozes with style. For all the challenges, exploration of the abandoned cities and mazes of underground caverns filled with mutated enemies never feels grating. Some paths may seem linear, with some dungeons leading off to narrow hallways or circular loops. That said, proper enemy placements keep combat fair for the most part.

Make no mistake, though. Code Vein is hard — or, to be more precise, very hard. Enemies are invariably smart and situated in ways that take unwary players off-guard. There’s a learning curve, and players just starting out will find themselves giving away a handful of lives before getting the hang of things. The good news is that death doesn’t lead to permanent loss of progress. It’s still a setback, but because checkpoints are fairly generous in number, its occurrence becomes a source more of irritation than of frustration.

Players delving a little deeper into Code Vein will likewise welcome the companion system. Unlike other Souls-like titles, the game allows friendly non-playable characters to be brought to battle. They’re able to take hits and deal out damage just as well as the principal character can, and they bring their own special sets of traits, equipment, and bonuses. Considering their pluses, they become essential to progress, bringing a lot of variety to an otherwise straightforward combat system.

The same can also be said for Code Vein’s myriad weapons, most of which have a particular playstyle that need some getting used to. While they’re nowhere near in number as those in, say, Monster Hunter, they do have more than enough types to allow for significant variety in dealing with enemies. Is waiting opponents out before striking up close the best option in the moment? Or is picking on them from moderate range with a rifle more prudent, There’s no right or wrong answer to combat, and players will want to master the possibilities before sticking to a favorite.

All in all, Code Vein proves fairly accessible for a Souls-like offering. The difficulty spikes within the typically dark atmosphere remain glaringly evident, but the introduction of mechanics that allow for accompaniment makes the journey less disheartening. Moreover, it boasts of excellent level designs that make the campaign worthwhile. It’s not perfect; for instance, minor annoyances courtesy of NPC glitches and errant hit boxes show up on occasion. That said, it delivers in the end, and how. Highly recommended.

THE GOOD:

• Excellent core gameplay design

• Fairness in combat

• Immersive exploration sections

• Unique companion option

THE BAD:

• Can prove exceedingly difficult, especially for newcomers to Souls-like offerings

• Can feel a little rough around the edges

• Errant hit boxes

• Feels biased towards companionship, leading to single-player imbalance

RATING: 9/10

Ancestors: the Humankind Odyssey is as much an experiment as it is a game, and just a few minutes of playing confirms the contention. The open-world survival offering is ambitious, seeking to retell a dramatized version of the evolution of mankind spanning 10 million to two million years ago. Unfortunately, the things it gets right often blend with the things it gets wrong, ultimately compelling players to exercise not inconsiderable patience lest they be frustrated with its flawed interface.

At its core, Ancestors: the Humankind Odyssey wants players to wear the shoes of African forbears during the Neogene period and walk the path they once trod. It calls for survival in a cruel world, and doing so requires the examination of plant life, crafting of useful tools, and, at times, dodging or overcoming the many predators that roam the jungle. Scaling trees, hunting for food, jumping along vines and climbing branches, and even finding a mate and raising offspring – these become part and parcel of life within the game. Its core premise is clear: the main character, the leader of a clan, has to stay safe, stay secure, stay fed, stay with others, and keep others safe, secure, fed, and together as well. And, conceptually, it works pretty well, with progress involving a natural push towards more dangerous territory, wary of surroundings, but eager to learn more. If nothing else, it encapsulates the plight of early man — more like ape, really — and conveying the helplessness and fear he must have once felt.

However, while the premise of Ancestors: the Humankind Odyssey is sound, the game doesn’t do so well with the controls. Whether using a peripheral or a keyboard-and-mouse combination, players will occasionally find themselves struggling with and for control. The aim for a realistic approach to survival is admittedly laudable; sight, sound, and smell are requisites to scoping out large swaths of land. The character will be gathering items to use as tools, or ducking into tall brushes to hide — great in theory, but difficult in practice.

When the same command keys tend to lead to different things depending on the character’s stance and posture and on the context of the action, the inability to execute moves as desired allows frustration to set in. For example, the character will constantly be stopping to pick up items when players actually want him to use other senses. Thus, much of the first part of Ancestors: the Humankind Odyssey requires wrestling with the controls. Even after players get used to the interface, comfort and comfortability never set in; commands feel more like vague suggestions, thereby curtailing freedom and necessitating repetition. It’s a pain in a controlled environment, and an absolute nightmare in moments of stress. Again, patience is a must.

That said, Ancestors: the Humankind Odyssey can prove satisfying, and perhaps oddly so. Assuming players get past, or used to, the clunky, annoying controls, they’ll appreciate the effort of Panache Digital Games to present a feral world that Earth was once, and to show the determination of mankind to buck the odds, transfer knowledge to descendants, and keep plodding on. Its opening cinematic conveys the state of nature, uncaring and cruel, and close to impossible to survive. And in the moments the character does survive seemingly insurmountable challenges, players feel like champions. The moments are few and far between, but they’re there. When an elusive prey is struck down, or when a predator is outwitted, for instance, pride sets in; because elements of the game — and the game itself — put up fight after fight, triumph tastes doubly sweet.

Considering how Ancestors: the Humankind Odyssey unfolds, it’s fair to wonder if the developers meant it to run as it does. Was the hard-to-tame control scheme a deliberate attempt to parallel the uncertainty and fear progenitors might have once had, similar to how Resident Evil or Silent Hill used their tank control and awkward camera angles to evoke terror? Is the elicitation of sheer annoyance an attempt to immerse the player in the game even more? It’s anybody’s guess, although there can be no doubting the artistic choices they made to see their vision come to life.

At the end of the day, Ancestors: the Humankind Odyssey winds up as a conceptually interesting release. Vexation can set it, but perseverance does have its rewards. Which, in a nutshell, is life itself. People live, people suffer, and people triumph in spite of the odds. And then people start all over again.

THE GOOD:

• Visually pleasing, featuring outstanding environmental character design

• Near-realistic attention to detail with regards to actions, requiring good use of sound, sight, and touch for navigation

• Movement is fast and fluid

THE BAD:

• Clunky general control scheme, with most of the things to do in-game having a layer of tedium

• Repetitive at times

• Unintuitive combat and game design

RATING: 8/10

THE LAST WORD: Publisher 2K Sports has revealed a Next-Gen Courtside Report and trailer introducing The City, the new multiplayer setting for the next-gen version of NBA 2K21. The most ambitious execution of a virtual basketball community ever with a map much larger than previous Neighborhoods, The City is complete with towering skyscrapers, sprawling plazas, a city center, and distinct boroughs controlled by rival affiliations. The next-generation version of NBA 2K21 will be released today for the Microsoft Xbox Series X|S and on Nov. 12 for the Sony PlayStation 5.

Fruitas buys a P140-million Manila property as headquarters

FOOD AND BEVERAGE kiosks operator Fruitas Holdings, Inc. has bought a P140-million property in Manila City to be used as its new headquarters.

In a disclosure to the exchange Monday, the listed firm said it has acquired a 909.5-square meter parcel of lot in Ramon Magsaysay Blvd., Sta. Mesa, Manila.

“The acquisition of the property allows Fruitas to secure ownership, and therefore the long-term use, of (an) asset which is vital for the future operations of the group,” it said.

Fruitas is using a portion of the P820-million proceeds from its initial public offering (IPO) last year to pay for the property in cash. Some P40 million have been paid last week, while the balance may be paid until Dec. 15.

“Given the current low-yield environment, [the company decided to] invest in assets which can provide higher returns, consolidate certain back-office operations and also generate rental income from tenants of potential excess space,” it said.

“[I]n the long-run, we also expect the asset will have capital appreciation,” it added.

The property has a five-storey building with a net floor area of more than 2,000 square meters. It was bought by Fruitas from the Philippine Bible Society, Inc.

The company first announced its plan to buy a property for its new headquarters in September. It has allotted P145 million for the plan from the P165-million IPO proceeds it is reallocating.

The remainder of the reallocated funds, or P20 million, will go to its fund for commissary expansion. Fruitas is looking to buy the 1,328-square meter land, where its Quezon City buko water commissary is located.

In the first half of 2020, Fruitas booked an attributable net loss of P12.35 million, reversing its attributable net income of P51.97 million the same period last year. This is due to temporary store closures following the government’s lockdown protocols.

Fruitas shares closed at P1.35 apiece on Monday, down five centavos or 3.57% from the last session. — Denise A. Valdez