The controversial startup community shifts operations following Malaysian investigations and regulatory pressure
Network School, a technology-focused residential community founded by former Coinbase executive Balaji Srinivasan, is relocating its activities to Kazakhstan after Malaysian authorities revoked its business license amid immigration and regulatory concerns.
Malaysia Revokes Business License
Johor authorities revoked Network School’s business license on July 21, 2026, following investigations into alleged immigration law violations at its Forest City campus. The inquiry began after claims circulated online that the organization had facilitated the entry of Israeli nationals into Malaysia, prompting authorities to review its compliance with immigration and business regulations.
Major Investment Plans Suspended
Before the license was revoked, Network School had already paused its planned RM500 million investment in Forest City. Founder Balaji Srinivasan said the organization had invested more than RM100 million without government funding and warned that regulatory uncertainty could discourage future international technology investment in Malaysia.
Kazakhstan Becomes the New Base
Network School has since shifted its operations to Kazakhstan, where its official platform now promotes a residential community for entrepreneurs, software developers, AI researchers, and cryptocurrency enthusiasts. The move marks a significant transition from its original base in Malaysia, which had been marketed as a technology hub near Singapore.
Startup Society Concept Faces Scrutiny
Founded by former Coinbase Chief Technology Officer Balaji Srinivasan, Network School is based on the concept of “network states,” where digitally connected communities live and build businesses together. While supporters view the initiative as an innovative model for entrepreneurship and global collaboration, critics have questioned its governance, transparency, and relationship with host countries.
Malaysia’s Investment Climate in Focus
The controversy has renewed attention on Malaysia’s efforts to position Johor and Forest City as international technology and investment destinations. Although authorities emphasized that all foreign organizations must comply with national laws, the departure of a high-profile project may influence how global investors assess Malaysia’s regulatory environment.
Network School’s relocation marks a major setback for its Malaysia-based ambitions while opening a new chapter in Kazakhstan. The dispute highlights the opportunities and risks facing technology communities that operate across borders and challenge traditional models of education, business, and residency. For Indonesians and Singaporeans, the development is particularly relevant because Forest City sits near Singapore and forms part of Johor’s expanding cross-border economic region. Its departure may influence future discussions about foreign investment, digital nomad communities, and regulatory oversight across Southeast Asia.
Sources: Channel News Asia (2026), Straits Times (2026), The Star (2026), Business Times (2026), South China Morning Post (2026)
Keywords: Network School Kazakhstan, Balaji Srinivasan, Malaysia License Revocation, Forest City Johor, Startup Society, Technology Investment
