4 hrs ago
Japan Visa Hike Drives Foreign Entrepreneurs To Consider Leaving
Japan has made it harder for some foreign people to get a visa to run a business.
The article’s headline says the required investment rose from 5 million yen to 30 million yen.
Many fewer people applied after the changes were announced.
The article also says 953 people who had held these visas left Japan in the first half of this year.
Some business owners say they may leave or give up plans to start companies.
Japan’s prime minister says the changes are meant to make rules fairer and more orderly.
Economists worry Japan could have a harder time attracting workers and business talent.
Japan is already facing an ageing population, a falling birth rate and labour shortages.
Japan’s revised business-manager visa requirements have raised capital demands, with the headline describing an increase from 5 million yen to 30 million yen.
A reported 953 former business-manager visa holders left Japan in the first half of this year, almost four times the number a year earlier.
Applications for business-manager visas fell 96% in the five months after the changes were announced.
Prime Minister Sanae Takaichi said the changes are intended to address concerns about unfairness and ensure orderly policies toward foreign nationals.
Economists and business owners warn the tougher rules could deter entrepreneurs and make it harder for Japan to attract workers.
- Who
- Foreign entrepreneurs and business-manager visa holders; the changes are defended by Prime Minister Sanae Takaichi and criticized by some business owners and economists.
- What
- Tighter business-manager visa requirements have coincided with fewer applications and more former visa holders leaving Japan.
- Where
- Japan.
- When
- The reported departures were in the first half of this year; applications fell in the five months after the changes were announced.
- Why
- The government says the changes address concerns about unfairness and ensure orderly policies toward foreign nationals; critics warn they could discourage entrepreneurs and workers.
Government rationale
Business and economic concerns
Purpose of the tighter rules
Government rationale
Prime Minister Sanae Takaichi said the changes respond to concerns and feelings of unfairness and aim to ensure orderly policies toward foreign nationals.
Business and economic concerns
Economists and business owners say the higher requirements may make it harder for foreign entrepreneurs to establish businesses and for Japan to attract talent.
Impact on Japan’s workforce
Government rationale
Officials say higher visa fees were necessary because previous figures were too low compared with other countries.
Business and economic concerns
Economists warn tougher rules could intensify recruitment challenges while Japan faces a falling birth rate, an ageing population and labour shortages.
Key facts
- Capital requirement described in headline
- Rose from 5 million yen to 30 million yen.
- Departures
- 953 former business-manager visa holders left Japan in the first half of this year.
- Year-on-year comparison
- The 953 departures were almost four times the number in the same period a year earlier.
- Visa applications
- Applications fell 96% in the five months after the changes were announced.
- Government rationale
- Prime Minister Sanae Takaichi cited concerns about unfairness and the need for orderly policies toward foreign nationals.
- Economic concerns
- Economists warned the rules could worsen efforts to attract foreign workers amid a falling birth rate, an ageing population and labour shortages.
Quotes
Andy Lunt
Owner of the Shin-Hinomoto izakaya bar in Tokyo’s Yurakucho district.
“We have always had a dream of setting up a godo kaisha [the Japanese equivalent of a limited liability company], but these changes mean that it is out of reach now.”
businesstoday.in
“They are checking up on people’s papers a lot more, and the message I’m hearing is that Japan is not going to tolerate this any more.”
businesstoday.in
Martin Schulz
Chief policy economist for Fujitsu’s Global Market Intelligence Unit.
“There is a lot of frustration among small business operators and managers, people who have come to Japan to build a business but now face far higher capital requirements and are leaving.”
businesstoday.in
Sources
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