KUALA LUMPUR - The business licence of Network School, a digital nomad community founded in Malaysia by US investor Balaji Srinivasan, has been revoked after an investigation into alleged immigration law violations, the chief minister of Johor state said on Tuesday.
The probe came after claims by social media users that Network School had facilitated the entry of Israeli nationals into the country. Israel does not have diplomatic relations with Malaysia, which is a staunch supporter of the Palestinian cause.
Last week, Malaysia’s immigration department carried out an inspection and found that members of the Network School had valid travel documents.
However, concerns have also been raised over Srinivasan’s mission, outlined in his 2022 book The Network State, to set up decentralised communities separate from existing nation states, which some social media users said posed risks to Malaysia’s sovereignty.
The Network School website describes the project as a “startup society” and a “frontier community”. It was established at Forest City, a sprawling $100-billion development on reclaimed land in Johor state.
A number of communities backed by tech billionaires have been set up in various parts of the world to experiment with new forms of social organisation.
“The Johor state government takes note of and fully supports the decision of the Iskandar Puteri City Council’s special meeting to revoke the business licence and order the cessation of all activities of NS0 Malaysia Sdn Bhd (Network School) in Forest City, effective July 22, 2026,” Johor Chief Minister Onn Hafiz Ghazi said in a social media post on Tuesday.
He said the decision was made based on due process and applicable legal provisions and followed a review of inspection reports, enforcement findings, and representations submitted by the company.
Reuters has sought comment from Srinivasan and Network School about the closure.
“The state government wishes to emphasise that Johor always welcomes high-quality investments that benefit the economy, create job opportunities, and drive state development. However, no investor, company or organisation may be placed above the sovereignty of the country’s laws,” Onn Hafiz said.
He also urged all relevant government agencies to tighten the due diligence process, including background checks, ownership, sources of funding, operational models, as well as the narratives promoted by any company or organisation.
