KUALA LUMPUR - Japan’s Business Federation, Keidanren has urged the government to introduce a basic law that clearly outlines a national philosophy for integrating foreign workers into Japanese society.

Keidanren said Japan should move away from merely accepting foreign nationals and instead adopt a strategy focused on actively attracting them.

In a proposal released on December 15, it said the long-term aim should be to build an inclusive society where Japanese citizens and foreign residents support one another.

Keidanren also proposed setting up a permanent and specialised department under the prime minister to oversee policies related to foreign workers.

The number of foreign residents in Japan has reached a record 3.95 million, accounting for about three per cent of the total population.

This figure is expected to rise further as Japan looks to address labour shortages across many industries, with the foreign-born population projected to reach 10 million in the 2040s.

Keidanren noted that issues such as crimes involving some foreign nationals and growing xenophobia have become social concerns.

It said Japan must attract highly skilled talent from around the world to support technological innovation and economic growth.

Policies should also consider the lives, careers and long-term settlement of permanent foreign residents, the group said.

Currently, the Immigration Services Agency coordinates the acceptance of foreign nationals, but Japan lacks a law that clearly defines its overall approach to migration.

Keidanren said a basic law, supported by a Cabinet minister with investigative powers, would allow better coordination across areas such as employment and education.

The proposal also stressed that companies must improve working conditions to strengthen foreign workers’ sense of belonging and contribution.

This includes fair pay, better welfare benefits, multilingual support and safe working environments, it said.

Keidanren added that businesses will help build regional networks to support foreign nationals living and working in Japan.

Toshihiro Menju, a guest professor at the Kansai University of International Studies, said the rise in foreign nationals is meant to offset Japan’s shrinking workforce, warning that restricting this could lead to societal dysfunction.

“The increase in foreign nationals is occurring to supplement the decreasing Japanese workforce. If this is suppressed, there is a risk that society will fall into dysfunction,” Toshihiro said.