KUALA LUMPUR - Japan is considering setting a cap on the number of foreign workers it will accept under a new training and employment system starting in 2027, as part of a wider review of its immigration approach.

According to reports by Kyodo, Japan plans to take in about 426,000 foreign workers during the first two years after the programme is launched in 2027.

The review comes amid growing public concern over the rising number of foreign residents, following instructions from Prime Minister Sanae Takaichi to tighten measures, including against visa overstayers.

Despite ongoing labour shortages caused by an ageing population, Japan is preparing to replace its controversial Technical Intern Training Program, which has faced criticism for labour abuse and human rights issues.

The new framework, known as the Skill Development Job program, is intended to shift away from low wage training arrangements toward a more structured employment pathway.

Under the new system, foreign workers will be encouraged to move into Special Skilled Worker status, which allows them to stay longer after completing three years of work.

A draft proposal presented to an expert panel shows Japan plans to accept up to about 805,000 workers under the special skilled worker scheme through March 2029, slightly lower than the 820,000 target set last year.

The government said intake numbers could be reduced further if productivity improves through greater use of digital technology and efficiency measures.

Overall, Japan expects to accept a combined total of 1.23 million foreign workers under both the existing and newly introduced programmes, with Cabinet approval expected in January.

The new training scheme will cover 17 job sectors, including agriculture and construction, fewer than the 19 sectors currently covered under the special skilled worker system.

Japan offers two types of special skilled worker visas, one allowing a stay of up to five years and another allowing indefinite renewals that can lead to permanent residency.

In principle, the planned limits will apply only to holders of Special Skilled Worker I status, which covers jobs requiring considerable skills or experience.

As of the end of June, around 333,000 people held Special Skilled Worker I status, while about 449,000 technical trainees were working in Japan, according to immigration data.