KUALA LUMPUR — Network School has suspended plans for further expansion in Malaysia, with founder Balaji Srinivasan saying the organisation needs greater assurance that the country remains a stable and welcoming environment for global technology investors.
In a statement addressed to Prime Minister Datuk Seri Anwar Ibrahim, Balaji said the decision was made despite Network School having invested more than RM100 million in its campus at Forest City, Johor, over the past 18 months.
He said the investment reflected Malaysia’s efforts to attract international talent, startups and technology companies.
“We opened a startup society called Network School in Malaysia because I felt I’d been invited in by the government’s pro-tech policies,” he said in a statement shared on X.
Balaji said Network School had since developed into an international technology community, attracting thousands of engineers, founders and investors from more than 70 countries.
“We’ve already invested 100M+ MYR in our campus to make it startup-friendly,” he said, adding that the funding came from the organisation and not from government sources.
He said the project had generated employment opportunities for Malaysians, supported local businesses and invested in the domestic startup ecosystem.
Among its initiatives, Balaji said Network School had invested in Malaysian startup Collektr, hosted events for Superteam Malaysia, and supported businesses around Forest City, including restaurants and laundromats.
He also claimed that the project had helped revive interest in Forest City by increasing activity and contributing to higher property values in the area.
Balaji said Network School had been preparing a further expansion valued at more than RM500 million, alongside plans to establish a global merit scholarship programme with Replit founder and chief executive officer Amjad Masad.
However, he said these plans have been suspended following recent developments involving allegations against the organisation and members of its community.
“At this point, all further investment we were planning to make in Malaysia is on hold until we get sufficient assurance that such issues won’t recur,” he said.
Balaji said the uncertainty had also affected the investment considerations of several global technology executives, founders and venture capital investors who had visited Forest City through Network School.
He said Malaysia could reassure international investors by engaging directly with the organisation.
Balaji said Network School was seeking a meeting with the Prime Minister’s Office to discuss a memorandum of understanding (MoU) with the Malaysian government, similar to an agreement signed between the Solana Foundation and the Kazakhstan government.
“We aren’t asking for any money, just a meeting, to help restore confidence in Malaysia as an investable jurisdiction,” he said.
He added that Network School would continue respecting Malaysia’s sovereignty and comply with all local laws if both parties decided to proceed.
The investment concerns arose after allegations circulated by an anonymous social media account, MP4P, which accused Network School of harbouring illegal immigrants and linked members of its community to Israel.
Balaji rejected the claims as false, saying they led to an inspection by Malaysian immigration authorities at the Forest City campus on July 14.
He said immigration officers checked hundreds of passports belonging to individuals from more than 40 countries and subsequently confirmed that all travel documents were in order.
“After checking hundreds of physical passports from 40 countries, including dual passport holders, the authorities confirmed that all travel documents were in order,” he said.
Balaji also thanked the authorities for conducting the inspection professionally, adding that Network School had fully cooperated throughout the process.
“Our faces are shown and our names are known; we have nothing to hide,” he said.
While acknowledging the outcome of the inspection, Balaji said the episode had nevertheless affected investor confidence.
“There are two paths forward,” he said. “If Malaysia still wants continued global tech investment… we request an audience with the Prime Minister’s Office. Alternatively, if you don’t want our investment… we will of course respect your wishes, and reallocate our capital to other countries instead.”
He said Network School remained open to continuing its expansion in Malaysia, but future investments would depend on whether confidence could be restored among international technology companies and investors considering the country as a regional hub.
The controversy began after several social media users questioned Network School’s presence in Forest City.
Claims circulated online included allegations that the project had attracted foreign entrepreneurs, including Israeli nationals who allegedly entered Malaysia using passports issued by other countries.
The allegations later prompted an inspection by immigration authorities, who confirmed that all travel documents checked at the campus were in order. — July 17, 2026