Malaysia probes startup community based in Johor's Forest City over alleged Israeli links
The Network School brands itself as a physical co-living and co-learning community for tech founders, remote workers, and content creators located “on a Malaysian island off the coast of Singapore”.
Launched in 2024, the Network School is a private residential community in Forest City founded by former Coinbase chief technology officer and investor Balaji Srinivasan. (Photo: Network School)
KUALA LUMPUR: Malaysia’s Home Affairs Ministry on Tuesday (Jul 14) ordered a probe into the operations of a startup community based in Johor’s Iskandar Puteri following allegations that Israeli nationals have participated in its programme using second passports from other countries.
In a statement, the ministry said that investigations into the Network School are underway, adding that it takes a serious view on matters involving national security, compliance with immigration laws and the misuse of Malaysia’s immigration facilities.
"Stern action will be taken without compromise if investigations uncover any breaches of the law, abuse of immigration passes, submission of false information or other offences that could undermine national security and the country's interests," it said.
The ministry further stressed that the government will not compromise against any individual or organisation that misuses Malaysia’s immigration facilities or engages in activities that contravene the law and could jeopardise national security, public order or the country’s sovereignty.
The Network School brands itself as a physical co-living and co-learning community for tech founders, remote workers, and content creators located “on a Malaysian island off the coast of Singapore”.
CNA has reached out to Network School for comment.
Earlier on Tuesday, Johor Chief Minister Onn Hafiz Ghazi had called on the authorities to conduct a probe into Network School’s operations, noting that his state government is aware of public concerns regarding the organisation.
“I affirm that the Johor state government will not allow any party to use this state as a base for introducing ideologies or movements that conflict with the laws, sovereignty, and interests of Johor and Malaysia,” he said in a statement.
Israeli passport holders are banned from entering Malaysia without prior permission from the Home Affairs Ministry as both countries do not maintain diplomatic ties.
Onn Hafiz said that he had asked the ministry, Immigration Department, police, Customs Department and other relevant security agencies to investigate the identities and nationalities of those involved with the Network School.
This also included investigations into the purpose of their entry into Malaysia and whether the reason for entering the country was consistent with the activities being carried out.
Authorities should also examine the travel documents and the alleged use of second passports by those linked to the organisation, he added.
Onn Hafiz said that the higher education and digital ministries as well as other relevant regulatory agencies have also been requested to determine the “true status of Network School’s operations”, including whether its programmes require registration or approval under Malaysian law.
At the Johor state level, the Iskandar Puteri City Council, the Johor Land and Mines Office and relevant agencies will re-examine all compliance aspects under their respective jurisdictions, said Onn Hafiz.
This includes compliance with premises licence conditions, building usage, land express and special conditions, accommodation, business activities, and any other applicable legal or regulatory requirements.
“Should the investigation uncover any violations of the law, misuse of passports, breaches of license or land conditions, or any elements that could affect the state's interests and national security, the state government urges that firm action be taken by the authorities without any compromise,” the Johor chief minister added.
“The state government will continue to act responsibly and in accordance with the law to protect the state's interests and uphold national sovereignty.”
In October last year, Israeli vlogger Nuseir Yassin, also known as Nas Daily, sparked controversy after appearing in a video filmed in Johor promoting Network School, local news outlet the New Straits Times reported.
The video, which featured Johor landmarks and views of Singapore, has since been removed.
Launched in 2024, the Network School is a private residential community in Forest City founded by American entrepreneur and investor Balaji Srinivasan, Free Malaysia Today (FMT) reported.
According to its website, it is a “frontier community for techno-optimists” with memberships starting from US$1,500 a month for shared accommodation, including meals, gym access and co-working facilities.
The project is linked to Srinivasan’s idea of a “network state”, a digitally connected community that can eventually establish physical settlements with their own social and economic systems, reported FMT.
