Network School Ordered to Close After Alleged Israeli Links Spark Weeks of Controversy

Allegations that Israeli nationals were living and working at Network School in Johor's Forest City set off weeks of political scrutiny, diplomatic attention and regulatory investigations, culminating in Malaysian authorities revoking the project's business licence.

Founded in 2024 by former Coinbase chief technology officer Balaji Srinivasan, Network School is a private residential and co-working community in Forest City where entrepreneurs, software engineers, investors and technology professionals from around the world live and collaborate on startups, research and innovation.

The allegations quickly became the focus of public debate as Malaysia does not recognise Israel and generally prohibits Israeli passport holders from entering the country.

However, individuals with dual citizenship who travel on passports issued by another country may not immediately be identified as Israeli nationals, a loophole that has surfaced in previous cases.

One of the most notable examples involved Israeli-Arab content creator Nuseir Yassin, better known as Nas Daily, whose visit to Malaysia in 2022 sparked criticism after it emerged he had entered the country using a St Kitts and Nevis passport obtained through citizenship-by-investment.

Following the allegations, the Home Ministry, Immigration Department and Johor authorities launched investigations into Network School.

Immigration officers later inspected 266 foreign nationals from 40 countries and said those checked possessed valid travel documents, although wider regulatory investigations continued.

Prime Minister Anwar Ibrahim also said any Israeli nationals found to be involved with the project would be deported immediately, reaffirming Malaysia's longstanding policy towards Israel.

On Tuesday, the Iskandar Puteri City Council revoked Network School's business licence with effect from July 22.

Johor Menteri Besar Onn Hafiz Ghazi said the state supported the decision, adding that while Johor remains open to foreign investment, compliance with Malaysian laws, national security and sovereignty would not be compromised.