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2025/09/25

U.S. Visa Shakeup and Its Ripple Effects in APAC

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The United States has introduced a major change to its H-1B visa program, a development that could reshape global talent flows. As of September 21, 2025, new applications will face a $100,000 one-time fee, part of a broader effort to reduce the number of lower-paid foreign workers and give preference to higher-earning roles. While the fee does not affect current visa holders, renewals, or applications already submitted, it marks one of the most dramatic shifts in U.S. immigration policy in recent years.

The new framework also shifts how visas are allocated. When demand exceeds supply, petitions linked to higher salaries will be given priority, marking a significant departure from the long-standing lottery system.

For Asia-Pacific countries, and Japan in particular, the implications could be significant. Japanese engineers, researchers, and startup founders have often viewed the U.S. as a natural next step in their careers. The higher financial barrier may now discourage companies from sponsoring Japanese professionals unless the returns are clear. As a result, global firms may look to strengthen their operations in Asia, keeping more advanced technology and R&D roles within the region rather than sending them overseas.

This change may also positively affect the flow of talent into Japan. Many professionals who gained experience in the U.S. eventually returned with valuable skills and networks. If fewer people make that journey, Japan could see a slowdown in this type of talent circulation. At the same time, other countries with welcoming visa policies—such as Singapore—could also benefit by attracting global firms and professionals who might once have considered the U.S.

For Japan’s growing startup ecosystem, the shift represents both a challenge and an opportunity. With fewer pathways to the U.S., more talent may remain within the domestic market. To harness this, Japanese firms will need to offer competitive compensation, international exposure, and mobility options that can rival the opportunities traditionally found overseas.

This is a critical moment for Japan to rethink how to attract and elevate global talent at home. Although Japan’s visa and immigration policies have historically been more restricted than in the U.S., there have been signs of change (short-term work visas, interest in attracting international talent, etc.). If Japan leverages this moment by making it easier for skilled foreign workers to move here (less bureaucracy, better work visas/permits), it could gain comparative advantage.


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