Network School founder Balaji Srinivasan is seeking a memorandum of understanding with Malaysia after authorities investigated his Forest City tech community over allegations it hosted Israeli citizens using second passports. Malaysia's Home Affairs Ministry said Tuesday it was probing Srinivasan's start-up community in Johor following claims it included Israelis in violation of immigration laws, with initial checks finding all 266 foreigners held valid documents. Srinivasan said Thursday the agreement would give Network School legal certainty to continue investing in Malaysia, warning the community could relocate to more welcoming countries without it. Israeli passport holders are forbidden from entering Malaysia, a Muslim-majority country that does not recognize Israel, without written permission from the Ministry of Home Affairs.
Malaysia Investigation Finds All Foreigners Hold Valid Documents
Malaysia's Home Affairs Ministry announced Tuesday it was investigating Srinivasan's start-up community in Johor following claims it included Israelis in violation of immigration laws. Initial checks found all 266 foreigners held valid documents. The Network School is located in Forest City, Johor, about an hour from Singapore, and is marketed as a physical community of tech builders, creators and founders. Srinivasan, the former chief technology officer of Coinbase, launched the community in August 2024.
Srinivasan Suspends $122 Million Expansion Plan Pending Assurance
Srinivasan said in a video directed at Malaysian Prime Minister Anwar Ibrahim on Thursday that he wants a document confirming Network School is personally welcome, not just an abstract statement that tech is welcome. He did not specify what a deal with Malaysia could include, but suggested it could be a memorandum of understanding or a modification of a special economic zone provision. Srinivasan announced he is putting any further investment in Malaysia, including a $122 million plan to expand the community, on hold until it gets sufficient assurance that such issues don't recur. He said the community will readily go somewhere else if it is not welcome.
Instagram Post from Activist Group Triggered Immigration Probe
Claims that the Network School was harboring Israeli citizens have been traced back to a social media post on Friday from activist group Malaysian Protest 4 Palestine, which accused the school of becoming a gathering place for Israeli entrepreneurs. Israeli passport holders are forbidden from entering Malaysia without written permission from the Malaysian Ministry of Home Affairs, as Malaysia does not recognize Israel and does not have any diplomatic relations with the country.
FAQ
What did Malaysia's investigation of Network School find?
Initial checks by Malaysia's Home Affairs Ministry found all 266 foreigners at the Network School in Forest City, Johor held valid documents.
Why did Balaji Srinivasan suspend his $122 million expansion plan in Malaysia?
Srinivasan announced he is putting any further investment in Malaysia, including a $122 million plan to expand the Network School community, on hold until it gets sufficient assurance that immigration issues don't recur following the government probe.
