Prime Minister Shinzo Abe has made a drastic policy compromise amid a series of deepening revelations over a faulty government survey, and will now forgo expansion of the controversial discretionary labor system in the current Diet session.

The shift is apparently intended to minimize damage ahead of a critical leadership election in September.

After weeks of heated criticism by opposition lawmakers, Abe announced late Wednesday night that he has decided to ¡°completely remove¡± expansion of the system from his proposed labor reform bill, currently at a draft stage, citing the public misgivings that have been stoked by the ongoing data scandal.