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Network School is essentially a co-living and co-working space for tech professionals, entrepreneurs and content creators. ST PHOTO: HARITH MUSTAFFA
Network School was a co-living and co-working tech commune based in Forest City, Johor, Malaysia. Founded in 2024 by former Coinbase CTO Balaji Srinivasan, it operated as a residential "startup society" for digital nomads, remote workers, and tech professionals, with memberships starting at US$1500 (RM6,135) a month.
Key concepts and controversies:
Vision: It served as a practical testbed for Srinivasan’s concept of a "Network State." Members gathered to live, work, learn, and socialize in a community focused on crypto, AI, and startup-building.
Facilities: The commune accommodated hundreds of members from dozens of different countries, providing hotel rooms, co-working spaces, daily lectures, and fitness activities.
Closure: The school was ordered to cease operations and had its business license revoked by the Johor government. This followed a controversy surrounding alleged Israeli participants in the program amid Malaysia’s ban on Israeli entry, which also led the founder to halt a planned RM500 million (US$122 million) expansion in the area.
For further details regarding the controversies that led to its shutdown, you can read the Strait Times Coverage. You can also explore the underlying ideology through Balaji Srinivasan's Original Network School Proposal.
Toxic mix of politics and religion a sure socio-economic-education disaster and loss
KUALA LUMPUR, July 22, 2026: The government authorities (both state and federal) never learn that mixing politics and religion is toxic for socio-economic growth, and education as well.
Closing down Network School in Johor’s Forest City is the state and country’s loss as Network School relocates to Kazakhstan, leaving a number of local SMEs (Small Medium-scale Enterprises) in the lurch.
Will talent education investors, both local and foreign, want to risk investing in Johor or Malaysia anymore after such a treatment on Network School?
Just after Johor revoked the business licenses of Network School, a Memorandum of Understanding (MoU) was signed with the Republic of Kazakhstan to realise the development of a new campus.
On X, the Network School founder, Balaji Srinivasan, announced that a campus is planned as a centre to gather global technology talents, with facilities including expedited visa processes, easier placement arrangements, and active talent recruitment.
Ha! Ha! Ha! Johor (and Malaysia)’s loss is Kazakhstan’s gain! Padan Muka Johor dan Malaysia! (Serves you right/You deserve it Johor and Malaysia!).
No News Is Bad News reproduces below two articles on the Network School controversy:
Dollar Akbar
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Murray Hunter
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Network School moves to Kazakhstan leaving a number of local SMEs in the lurch
Just after the local government in Johor revoked the business licenses of the Network School in Forest City, a memorandum of understanding (MoU) has been signed with the Republic of Kazakhstan to realize the development of a new campus.
On X, the Network School founder, Balaji Srinivasan, announced that a campus is planned as a centre to gather technology talents from all over the world, with facilities including expedited visa processes, easier placement arrangements, and active talent recruitment.
“I am pleased to announce that an MoU has been signed between the Republic of Kazakhstan and Network School.
“Our new campus will be a haven for the global community optimistic about technology,” he said in a post on the X platform.
Meanwhile, the Ministry of Artificial Intelligence and Digital Development of Kazakhstan announced that the MoU was signed by the country’s Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development, Zhaslan Madiyev, with Balaji.
The collaboration includes the development of educational programs related to artificial intelligence (AI), support for start-ups, joint research and the organisation of international conferences.
Online smear campaign by organized trolls
Just after the Johor State Election, an organized group of trolls, acting for an ‘unknown identity’ portrayed on social media that the Network School was a Zionist front with Israelis secretly residing at Forest City. This gathered momentum when the Johor State Government, having just won a landslide in the state election started moves to close down the operation.
The Network Schools, where the founder claimed he had invested over USD 100 million was denied any opportunity to appeal the local government rulings, and has basically had much of the physical part of his investment just forfeited.
Balaji was reported to have cancelled further investment plans worth about RM500 million in Malaysia. There were also moves underway for a number of hi-tech start-up firms to begin operations in Forest City.
All hopes for this innovative foreign investment the country needs has now evaporated.
Network School closing will hurt many local businesses
The real victims of the Network School closure will be small businesses such as restaurants, food stalls, mini markets, barbers, hair dressers, and miscellaneous service providers, who have been making a living from the Network School.
The network Schools had a multiplier effect, where the NS residents spent much money with the local community. These MSMEs are likely to go bankrupt and close down. So far, there has been no announcement from the Johor State Government to assist these victims.
The writer after talking to some international analysts, has been told of the prospects of foreign investors in innovative and tech industries now by-passing Malaysia because of the potential insecurity of future investment in a country that can immediately close any company down on a whim. For such a group, the risk of investing in Malaysia is now just too high.
As for Forest City, it will most probably remain empty as a white-elephant for years to come.
Network School premises closed and seized
A team of MBIP enforcement officers sealed the premises at 10.45am.
MBIP enforcement officers displaying a notice for the closure of Network School’s premises in Forest City, Johor, today. (Bernama pic)
PETALING JAYA: The Iskandar Puteri City Council (MBIP) today shut down and seized one of Network School’s premises in Forest City, Johor.
The tech commune came under scrutiny following claims that Israeli nationals were among its participants.
MBIP yesterday said that it would revoke Network School’s business licence after finding that the company had breached several licensing requirements.
The closure and seizure were carried out by a team of MBIP enforcement officers who sealed the premises at 10.45am, according to Harian Metro.
The enforcement team also displayed a notice ordering the closure of the premises under By-law 49(2) of MBIP’s Trade, Business and Industrial Licensing By-laws 2018.
MBIP is expected to issue an official statement regarding the closure and seizure soon, while Johor menteri besar Onn Hafiz Ghazi is scheduled to hold a press conference on the matter at 2.30pm.
The controversy surrounding Network School erupted after social media users questioned the programme in Forest City, alleging that Israeli nationals had participated using passports from other countries.
Israeli passport holders generally cannot enter Malaysia without approval, as Malaysia does not have diplomatic ties with Israel.
Immigration director-general Zakaria Shaaban yesterday said that 430 people had been identified as having links to the tech commune. He said 210 were still in Malaysia, 201 had left the country, and 19 were unaccounted for.
Zakaria said there was a possibility that the remaining 19 people had left the country illegally.
He also said his department found no evidence of wrongdoing after conducting two rounds of investigations into 379 foreigners linked to Network School.
Launched in 2024, Network School is a private residential community founded by former Coinbase chief technology officer and investor Balaji Srinivasan.
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