Japan Government Eyes Relaxing Border Controls, TBS Reports

(Bloomberg) -- Japan will unveil relaxed border control measures as soon as next week, broadcaster TBS reported, an indication it's ready to roll back some of the strictest restrictions in the developed world after they failed to contain the spread of the omicron variant.

The Friday report didn't elaborate on how or when measures would be relaxed. A handful of travel-related stocks from Japan Airlines Co. to West Japan Railway Co. traded higher in Tokyo's afternoon session after the news from TBS.

Prime Minister Fumio Kishida implemented the controls, which effectively ban all new foreigners from entering the country, when the omicron variant was discovered late last year and the move was initially applauded by voters. The controls are due to stay in place at least until the end of this month, with their prolonged implementation irking executives. This has included the head of Japan's largest business lobby, who has urged the government to reconsider the restrictions he sees as unrealistic.

Asked by a lawmaker about relaxing the measures Friday, Daishiro Yamagiwa, minister in charge of the coronavirus response, said the government would be “flexible” and wants to eventually open up the country to “essential” foreigners. The prevalence of Covid makes the rules less relevant, he indicated.

“We took on some of the strictest border measures among the G-7 when much about omicron was unknown,” Yamagiwa said. “But if we aren't going to see a change in case numbers in Japan and overseas, the border controls themselves become more irrelevant so we have to keep that in mind.”

A study published by government-affiliated bodies including the Japan International Cooperation Agency this week said Japan would need 6.74 million foreign workers in 2040, quadruple of what it has today, in order to meet the growth targets set out by the government. The world's third-largest economy has long grappled with labor shortages with a declining birth rate, an issue that will only become more pronounced as its population ages.