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21 JUNE 2026

Tuesday, July 21, 2026

Network School licence revoked, Johor MB urges tighter investor vetting

 


The Network School co-working space in Forest City, Johor, has been ordered to cease operations from tomorrow after the Iskandar Puteri City Council (MBIP) revoked its business licence.

MBIP said the decision was made at a special full council meeting after inspections on July 12, 14, 19, and 20 uncovered multiple breaches under the local authority’s jurisdiction.

According to the council, one of the organisation’s premises was operating without a business licence, while another approved for office use was being used for activities beyond its permitted purpose.

MBIP also said the signage displayed at the premises did not match the approved advertising permit.

“MBIP will not compromise and will initiate prosecution proceedings should the company persist in conducting activities that violate the law,” it said in a statement today.

Putrajaya urged to tighten vetting

In a separate statement, Johor Menteri Besar Onn Hafiz Ghazi backed the council’s decision, saying it was made in accordance with the law after the company’s explanations and inspection findings were reviewed.

He stressed that enforcement action was taken only after complaints were verified and non-compliance established.

Johor Menteri Besar Onn Hafiz Ghazi

Onn also urged Putrajaya to strengthen scrutiny of foreign investors entering Malaysia.

“The state government also calls on all relevant agencies to strengthen their due diligence processes, including background checks, ownership verification, sources of funding, operational structures, and the narratives promoted by any company or organisation.

“Accordingly, the state government urges the Home Ministry, the Immigration Department, the police, and the relevant security agencies to continue their investigations and take firm action should there be any abuse of second passports, misrepresentation of identity, breaches of entry conditions, or any offences under Malaysian law.

“This matter cannot be taken lightly, particularly as Johor serves as the nation’s strategic gateway bordering Singapore,” he said.

He also called on the Digital Ministry and the Malaysia Digital Economy Corporation (MDEC) to review the organisation’s Malaysia Digital status and take appropriate action if it was found to have breached any conditions.

Israelis in Malaysia?

The Network School came under public scrutiny after allegations circulated on social media that Israelis using second passports were living at the tech commune.

The issue escalated on July 14 after Onn urged federal authorities to investigate the claims.

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Amid the controversy, Network School founder and American tech investor Balaji Srinivasan sought a meeting with Prime Minister Anwar Ibrahim, saying the global tech community needed assurances before committing further investments in Malaysia.


In a post on X on July 16, Srinivasan said the organisation had invested more than RM100 million in Malaysia and had put further investments by Network School and its partners on hold pending greater certainty from the government.

He maintained that the community had complied with Malaysian laws and respected the country’s sovereignty.

Network School founder and American tech investor Balaji Srinivasan

A day later, Srinivasan denied reports that Network School was shutting down, saying it had received two notices from authorities and would rectify the issues within the prescribed remedial period.

He added that the notices did not affect the community’s residents.

Last week, Anwar warned that any Israeli national found in Malaysia would be deported immediately if found to be in breach of the country’s laws, following allegations that Network School was hosting Israelis.

He reiterated Malaysia’s uncompromising stance on the matter, adding that the relevant authorities were investigating the claims.

Immigration tracing 19 visitors

Separately, the Immigration Department said it is tracing 19 of 430 foreign nationals linked to Network School’s operations in Forest City.

Immigration director-general Zakaria Shaaban said checks showed that 210 individuals remain in Malaysia, 201 have left the country, while the whereabouts of 19 others could not be verified.

“We have 19 individuals whose movements cannot be traced. They may have left the country illegally or entered illegally.

“We are identifying their whereabouts and will conduct further investigations to determine whether they are still in Malaysia or have already departed,” Bernama reported him saying.

Zakaria added that the department had found no evidence of passport misuse and was working with other enforcement agencies and Johor authorities to continue investigations. -  Mkini

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