KUALA LUMPUR - Restaurant operators in Japan are reassessing their hiring plans after the government suspended the issuance of special visas for foreign workers in the food service industry as the number of visa holders approaches its quota limit.

The move by Japan’s immigration authorities has sparked concerns over stronger competition for foreign workers as the country increasingly depends on overseas labour to address workforce shortages.

Preliminary data showed that the number of foreign workers holding Type I Specified Skilled Worker visas in the food service sector reached around 46,000 by the end of February, nearing the fiscal 2028 quota of 50,000 workers.

The Immigration Services Agency suspended the issuance of certificates of eligibility for Type I visa applications from April 13, raising concerns among restaurant operators that some workers may return to their home countries and not return to Japan.

Type I visa holders are allowed to work in Japan for up to five years but are not permitted to bring family members, while Type II visa holders can stay without a time limit and bring their families with them.

Skylark Holdings is among the companies affected by the suspension after employing 32 exchange students, including those from Myanmar, as part-time workers and helping them prepare for the Type I status examination in June.

The company had planned to promote the workers after two years and eventually employ them full-time once they obtained Type II status.

A Skylark official said some workers may choose to return home instead of applying for visas in other sectors because they joined the company because they found interacting with customers fulfilling.

Mos Food Services, operator of the Mos Burger chain, also voiced concerns as it has been supporting people in Vietnam seeking specified skilled worker visas for Japan.

According to the Japan Foodservice Association, the visa suspension could affect restaurant expansion plans and business operating hours.

Industry players also fear some companies may begin recruiting workers already holding Type I visas from rival firms.

The association said there are concerns that the sudden visa suspension could make Japan a less attractive destination for foreign workers.

It plans to ask the Ministry of Agriculture, Forestry and Fisheries to raise the current cap of 50,000 workers in the sector.

However, the ministry said companies should first strengthen efforts to recruit domestic workers, adding that there is room for debate as to whether companies have made their utmost efforts to secure domestic workers first, a precondition for the visa system.