China plans to scrap its controversial temporary residence permit in a move that analysts believe is a transition toward a more relaxed household registration system, according to a public security reform plan approved by central authorities and released Sunday.

The abolition of the permit is part of a comprehensive public security reform that also vows to improve law enforcement responsibility and boost the welfare of the police force.

It is said to be the first comprehensive public security reform launched by the central government with vice public security minister Huang Ming saying that the reform aims at "addressing the fundamental and deep-rooted structural problems faced by the police force."

Permanent residence permits will replace the much-criticized temporary residence permit, according to the plan approved by the authorities, reported the Xinhua News Agency.

Observers hailed the move as progress toward optimizing China's labor market by allowing young workers, whose numbers are dwindling, to migrate freely across the country.

The permit has led to instability and unsettlement and the temporary residence registry system is no longer suitable for today's situation, Xinhua said.

The hukou, or household registration system, was introduced in the 1950s and ties access to social benefits and services to residential status.

Temporary residence permits are issued to a person who moves to a city or other areas for longer than a stipulated period, which varies according to region. The permits are essential documents when the person has to apply for a passport or travel permit to Hong Kong and Macao.

Many cities in China have already ended the temporary permit system, but Beijing currently still uses it.

The level of public services residents can access will depend on the duration of residence, according to the public security reform plan.

"[Removing temporary residence permits] is a transition toward a more relaxed hukou system … The current system has provided convenience for the police in managing migrant workers. It has also been a source of income for the department. But it has not brought as much benefit to migrant workers, as even with the permit, they can't access social programs," Hu Xingdou, a social science professor at the Beijing Institute of Technology, told the Global Times.