KUALA LUMPUR - Applications for business manager visas in Japan have dropped by 96% after the government tightened eligibility requirements last October.

Data from the Immigration Services Agency showed that monthly applications fell from about 1,700 before the changes to around 70 applications afterward.

The revised rules were introduced to prevent the visa system from being used mainly as a pathway for residency.

Speaking at a press conference on May 19, Economic Security Minister Kimi Onoda welcomed the sharp decline in applications.

“We believe that revising the approval criteria has, to some extent, alleviated concerns that the business manager status of residence was being misused as a means of immigration,” she said.

Under the new rules, applicants must now have at least 30 million yen (USD190,000) in capital, compared with the previous requirement of five million yen.

The new policy also requires businesses to employ at least one full-time Japanese worker or foreign resident with stable residency status.

Applicants are also expected to demonstrate Japanese-language ability equivalent to at least the N2 level of the Japanese-Language Proficiency Test (JLPT).

Business owners already operating in Japan must meet the updated conditions or present a plan to comply when renewing their visas.

The tighter rules have raised concerns among small businesses run by foreign nationals, especially restaurant operators with limited capital.

A study by Tokyo Shoko Research found that five per cent of foreign business owners are considering closing their businesses, while 45% expect the rule changes to affect operations.

Foreign business owners and immigration advocates have also launched campaigns calling for the government to review the stricter requirements.

An online petition on Change.org calling for the removal of the 30 million yen requirement gathered nearly 60,000 signatures by May 15.

The petition urges authorities to assess businesses based on operating history, tax contributions and employment records instead of capital size alone.

At a rally held in parliament on May 13, Indian restaurant owner Manish Kumar shared his experience after his business manager visa renewal was rejected.

Kumar, who has lived in Japan for 30 years, said the rejection forced him to close his Indian restaurant in Saitama after operating for 18 years.

“My children only speak Japanese and we’re told to go back to India.

“I have worked hard to get this far thanks to the support from fellow chefs and customers.

“I also have done nothing wrong. It is cruel to tell people to return to their home country just because the rules have suddenly changed,” Kumar said during the gathering.

A video of his emotional speech later gained millions of views online.

Campaign organiser Taro Tsurugashima submitted the petition to Immigration Services Agency officials during the rally.

An agency official said, regarding the demands made to ISA, they will report and share it within the agency, including the responsible department.

Authorities said visa holders who received approval before the rule change would be given a three-year transition period to meet the new requirements.

“Of course, this does not mean that just anyone will be approved, only those who properly meet the requirements.

“The Justice Ministry will continue to conduct on-site inspections in cases in which there are doubts about the substance of a business, with officials visiting business locations and examining applications appropriately under the revised approval standards,” Onoda said.

Concerns over abuse of the visa system had increased in recent years, particularly after social media posts claimed it was easy to obtain residency through business visas in Japan.

Public broadcaster NHK reported that the number of business manager visa holders rose to 45,000 by June last year, with about half of them being Chinese nationals.

Regional immigration investigations had also uncovered multiple shell companies linked to visa applications.

Prime Minister Sanae Takaichi has pledged to tighten immigration controls despite ongoing labour shortages and Japan’s declining population.