Malaysia Orders Balaji Srinivasan’s Network School to Cease Operations

• Malaysian authorities revoked Network School’s business license, ordering operations to cease while citing inspections, verified complaints, regulatory breaches, and legal procedures.
• Balaji Srinivasan disputed shutdown reports, describing licensing disputes involving signage and coworking facilities while defending the community’s immigration compliance record.
• Johor authorities urged stricter licensing checks, ownership verification, funding reviews, and broader investigations into potential immigration and identity-related violations.

Malaysian authorities have revoked the business license of Balaji Srinivasan’s Network School, ordering the digital nomad community in Forest City to cease operations from July 22. According to a statement shared on X by Johor Chief Minister Onn Hafiz Ghazi, the decision followed inspections, enforcement findings, and a review of the company’s representations.

Authorities explained that enforcement action only follows verified complaints, completed inspections, confirmed non-compliance, and legal procedures. They also clarified that operating for an extended period does not automatically mean a business complies with licensing conditions.

The directive arrived days after Malaysia’s Immigration Department inspected the facility following online allegations that it was hosting Israelis in violation of local laws. Officials reported that all 266 foreign members possessed valid travel documents. However, immigration authorities noted that additional compliance checks remained underway.

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Balaji Srinivasan Disputes Closure Reports

According to Balaji Srinivasan, reports claiming Network School had already shut down were inaccurate. He explained that the organization had received two licensing notices and intended to resolve both matters with the authorities. Srinivasan stated that one notice required updated wording on the school’s signage. Meanwhile, the second involved licensing requirements for a coworking space created by combining two neighboring commercial units.

Additionally, Srinivasan criticized the immigration inspection, arguing that anonymous social media allegations prompted officials to visit the campus. He noted that officers examined passports, including those belonging to dual passport holders, before confirming their travel documents were valid.

KENYATAAN MEDIAPEMBATALAN LESEN PERNIAGAAN DAN ARAHAN PENGHENTIAN OPERASI NS0 MALAYSIA SDN. BHD. (NETWORK SCHOOL) DI FOREST CITY

1. Kerajaan Negeri Johor mengambil maklum dan menyokong sepenuhnya keputusan Mesyuarat Penuh Khas Majlis Bandaraya Iskandar Puteri (MBIP) untuk… pic.twitter.com/WWidMMHLQd

— Onn Hafiz Ghazi (@onnhafiz) July 21, 2026

Despite those findings, Johor’s state government instructed the Ministry of Home Affairs, the Malaysian Immigration Department, the Royal Malaysia Police, and other security agencies to investigate possible misuse of second passports, false identity declarations, immigration violations, and other offenses under Malaysian law.

Moreover, state authorities called for stricter due diligence when reviewing businesses seeking approval to operate in Johor. Officials recommended stronger background checks, ownership verification, funding assessments, operational reviews, and closer examination of information submitted during licensing applications.

Network School Faces Regulatory Scrutiny

Srinivasan introduced Network School in August 2024 as a residential community for entrepreneurs, startup founders, and digital professionals. According to his earlier announcement on X, the project combined education, physical fitness, career development, and community living on an island near Singapore.

Residents paid $1,000 per month for shared accommodation or $2,000 for private housing. The project attracted international members seeking a location that blended remote work with startup collaboration and structured learning.

The latest licensing decision places the future of the project in doubt as Malaysian authorities complete regulatory reviews. Meanwhile, Srinivasan maintains that the issues involve administrative licensing matters rather than immigration violations.

Malaysia’s decision to revoke Network School’s business license marks a significant regulatory setback for Balaji Srinivasan’s project. According to the Johor state government’s statement, authorities will also strengthen licensing oversight while multiple agencies examine compliance with immigration and other applicable laws.

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