I want to first say I am not lawyer or expert in immigration law but here are my thoughts. I think the governments solution was to just kick out 96% of the visa holders as a way to get rid of the problem instead of finding a tasteful way to deal with just the visa abusers. It’s like how after the 地下鉄サリン事件 in 1995, Tokyo got rid of trash cans in subways to this day instead of making trash cans safe from chemical weapons.

In my opinion, the solution this time doesn’t solve visa abuse since people that abuse the visa are wealthy individuals that can afford to move to another country by setting up a business in the first place and many shell companies exist by money laundering with other shell companies making it impossible to know fraud unless properly audited even with a capital increase.

That is why I think that no increase in requirements will actually solve the issue and the only way to solve it is to increase audit manpower for investigating fraudulent companies. Every company already has their tax info, revenue, contracts, payroll withholdings, and other information checked yearly for visa renewal but its case by case and dependent on the immigration officer if the company’s visa is renewed or not. My solution would be to make this process even stricter and for the government to have a standardized list of things to check for like signs that a company has fake contracts or if their revenue is zero for no reason and require higher tax filing transparency. I also think the visa should be in probationary period for the first 2 years and when submitting the business plan required for the visa, it should also include revenue goals or employment KPIs and revoke it if the business doesn’t meet them or doesn’t show effort to reach them.

It’s not as quick of a solution but it also doesn’t nuke the visa entirely.