EY report: Migration infrastructure key to competitive advantage for Philippines and Asia-Pacific
A new EY report argues that countries must invest in migration infrastructure—including housing, credential recognition and integration services—to turn demographic pressures into economic opportunity. For the Philippines, the opportunity lies in building a talent ecosystem that benefits from intern
A new report by EY argues that countries must treat migration as strategic infrastructure—covering visa processing, credential recognition, housing and integration services—to turn demographic pressures and skills shortages into economic opportunity. The EY Megatrends 2026 report, which examines global cross-sector developments that reshape how organisations create value, warns that reactive migration policies create recurring crises while strong migration infrastructure builds resilience.
The report highlights that disaster-related displacement reached a record 45.8 million people in 2024, while the World Bank projects up to 216 million internal climate migrants by 2050. As one of the world’s most climate-vulnerable countries, the Philippines may face increased internal migration from climate-affected regions to urban centres, with implications for infrastructure, housing, jobs and public services. At the same time, demographic decline is shrinking workforces across advanced economies: the OECD old-age dependency ratio is expected to reach 52 per cent by 2060.
For the Philippines, the larger opportunity lies in building a national talent ecosystem that benefits from international mobility rather than simply supplying labour abroad, the report says. Overseas Filipino Workers contribute billions in remittances annually, but also generate valuable networks, experience and expertise that can strengthen domestic industries. As global competition for skilled workers intensifies, Philippine businesses and policymakers can focus on creating pathways that encourage knowledge transfer, diaspora engagement, investment and eventual return migration.
Infrastructure capacity is a binding constraint, the report notes. As climate and economic migration increase, cities will need to expand housing, schools, transportation and public services. Without accelerated investment, absorption capacity will remain a major constraint on migration regardless of workforce needs. Additionally, one-third of highly educated immigrants in OECD countries are overqualified for their jobs because foreign credentials are often not recognised, even as the World Health Organization projects a global shortage of 11 million health workers by 2030.
Countries that invest in talent and migration infrastructure can unlock significant economic benefits, the report says. Migrants support fiscal sustainability by strengthening the workforce and contributing to pension and healthcare systems. Beyond labour markets, immigrants and their children have founded 46 per cent of Fortune 500 companies and 44 per cent of US billion-dollar startups. Conversely, countries that fail to attract and integrate talent risk workforce decline, slower growth and reduced competitiveness.
The report concludes that business leaders can no longer view migration as solely a government concern. Housing, skills development, education and social belonging are long-term investments. Success will depend on coordinated action across business, government and civil society, and countries that build these foundations today will be better positioned to meet tomorrow’s talent needs.
