The government on Tuesday made a decision on a regulatory reform measure to allow foreign students to start their own companies.

With the revision, foreign students will be able to switch their residence status while at university to one that allows them to undertake entrepreneurial activities.

The measure was decided on at a meeting of the Council on National Strategic Special Zones, chaired by Prime Minister Shinzo Abe. It will be included in a new growth strategy to be approved at a Cabinet meeting in late June.

The government hopes that the measure will help increase the number of enterprises launched by foreign nationals, mainly in areas outside Tokyo.