The Federation of Philippine Industries (FPI) has attributed the recent decline in the PMI to challenges posed by weaker demand, a drop in export orders, weather-related disruptions, and the corruption controversy hounding the Philippine government.

On Monday, S&P Global reported that the Philippines Manufacturing Purchasing Managers’ Index (PMI) collapsed to 47.4 percent in November from 50.1 percent in October, the lowest in four years.

“Globally, corruption controversies are known to undermine investor trust, delay expansion plans, and possibly raise financing costs, and the Philippines has not been immune to these pressures,” said FPI chairperson Beth Lee in a Viber message.

Despite this, the organization said there are important reforms now being put in place: under Finance Secretary Frederick Go, discipline and transparency are being strengthened across agencies; BIR Commissioner Charlito Mendoza has suspended abusive audit practices to restore fairness and predictability; and Customs Commissioner Ariel Nepomuceno is driving digitalization and risk-based inspections to close loopholes and combat smuggling.

Lee said the government’s decisive campaign against corruption is the tough but necessary remedy, and with proper reforms and strict implementation, “we are confident it will deliver lasting benefits—restoring fairness for businesses and rebuilding trust among consumers.”

“By reducing discretion, enforcing clear standards, and ensuring full traceability from port entry to tax audit, these measures directly confront the issues exposed by the scandals. For compliant firms, this translates into a level playing field, lower hidden costs, and renewed confidence,” she said.

Moreover, Lee stressed that while households have grown cautious in their spending, the government’s reforms are laying the groundwork for trust to be rebuilt across both business and consumer sectors.

“With demand side support and credible enforcement now aligned, we look forward to a clearer path to restore confidence, strengthen manufacturing, and position ourselves for recovery in the near term,” according to Lee.