I think Japan thinks they can still attract enough foreigners to perform necessary service and manual labor jobs without the promise of permanent residency. That along with increasing automation - serving robots are a common sight at many restaurants these days, for example.
Permanent residency is reserved for those who can be a net benefit to social welfare programs - by earning and contributing more than the average Japanese household (about USD $36,000 - $42,000 according to google). There are also new language requirements to promote assimilation.
I don’t think it’s anything too radical by global standards, and I have read there are similarities to what Singapore and South Korea already do [1] (though I don’t know too much about their programs).
It’s important to note that the exact details haven’t been finalized yet. So exact income requirements could change from current proposals/rumors. There was a lot of outrage about proposed provisions to revoke permanent residency for people who commit crimes or don’t pay taxes, but when they actually came through they were pretty fair, common sense type changes.
These changes come on the heels of drastically increasing requirements for the business manager visa (which, to be fair, was heavily abused as a kind of “golden visa” in the past). They’ve also significantly increased visa application costs - I think I paid like ¥5,000 for my PR application, and it is now ¥200,000.
It does feel cruel to apply new requirements retroactively to people who have already submitted applications. And the stories of people whose lives are being completely upended by the changes are heartbreaking.
[1] https://www.japantimes.co.jp/commentary/2026/09/21/japan/jap...
Japan has a heavy shortage of workers [0], and it has been so for many years now. Your link cites the efforts from 2017, the reason wasn't some olive branch to humanity, Japan already was in dire need of working class people.
Right now the yen is so weak Japan salary look ridiculously low, there is the language barrier, and the low hanging jobs aren't great either (a ton in elderly care).
Their policies to restrict immigration will have few impact short term, as immigration is already slowing down and even Filinos, who have always been on the better side of immigration, are looking for better opportunities [1]. Longer term though, people will remember how it goes when Japan economy trends down, and the immigration going away might not come back even when the trend reverses. Especially as there will already be a probably better community built elsewhere.
[0] https://jp.ibtimes.com/japans-full-time-labor-shortages-pers...
[1] https://www.bangkokpost.com/world/3309634/why-filipino-migra...