Network School in Johor’s Forest City ordered to cease operations after business licence revoked

Network School in Johor’s Forest City ordered to cease operations after business licence revoked Iskandar Puteri City Council’s decision was in accordance with existing legal provisions, says Johor Chief Minister Onn Hafiz Ghazi. ISKANDAR PUTERI, Johor: Tech startup Network School has been ordered to cease all operations at its Forest City premises in Johor from Wednesday (Jul 22) following a revocation of its business licence by state authorities. The decision by Iskandar Puteri City Council (MBIP) on Tuesday is the latest twist in the saga after Network School’s American founder Balaji Srinivasan said over the weekend it would continue operations there. The MBIP held a special full council meeting following inspections and enforcement checks at Network School’s premises between Jul 12 and Jul 20, local news outlet The Star reported. The high-profile probe followed claims that Israeli nationals were among Network School’s participants and had entered Malaysia using passports from other countries. Malaysia, a staunch supporter of the Palestinian cause, does not have diplomatic relations with Israel and bars the entry of Israeli passport holders. The authorities have not found any travel-document violations so far. But Johor authorities found that Network School had breached licensing conditions and premises usage requirements, and served it two notices last week. Balaji said last Saturday that Network School would have a “remedial period for both issues”. CNA has reached out to Network School for comments on MBIP’s latest order to cease operations. JOHOR CHIEF MINISTER BACKS NETWORK SCHOOL CLOSURE On Tuesday, Johor Chief Minister Onn Hafiz Ghazi backed MBIP’s decision and stressed that the move was in accordance with existing legal provisions. “The enforcement action was only taken after complaints and information were verified, inspections were conducted, non-compliance was identified and all legal processes were completed,” he said in a statement. Not all of an entity's activities may comply with licensing conditions, he said. “When non-compliance is identified, action must be taken without compromise,” he said. While Johor welcomes high-quality investment, “no investor, company or organisation can be placed above the sovereignty of the country's laws”, he said. “Within the scope of jurisdiction provided, the state government and local authorities will not compromise on any violation of the law or matters that could undermine the security, sovereignty and interests of the country,” he added. Onn Hafiz called on the Home Ministry, Immigration Department, police and other relevant security agencies to continue their investigations into the issue and take stern action if offences involving the misuse of second passports, identity misrepresentation, breaches of entry conditions or other violations under Malaysian law were uncovered. “This matter cannot be taken lightly, especially when Johor is a strategic entry point to the country bordering Singapore. Any weakness or abuse of the immigration system must be addressed immediately, firmly and without compromise,” said Onn Hafiz. He also called on Malaysia’s Digital Ministry and the Malaysia Digital Economy Corporation (MDEC) to review any recognition granted to the Network School “should there be any breach of the stipulated conditions or principles”. The issue has also been presented to Malaysian king Sultan Ibrahim Sultan Iskandar as well as Johor Regent Tunku Ismail Sultan Ibrahim, Onn Hafiz said. 19 PEOPLE UNACCOUNTED FOR The Immigration Department said on Tuesday that 19 foreigners linked to the Network School remain unaccounted for and investigations are ongoing. Immigration Department director-general Zakaria Shaaban said the 19 were among 430 foreigners identified as being linked to the group's activities. He said 210 of them remained in Malaysia, while 201 have left the country. "The remaining 19 cannot be located. They may have left through illegal routes or may have entered the country illegally,” he was quoted as saying by the New Straits Times. "We will conduct further investigations to determine whether they are still in Malaysia or have already left.” Zakaria said his department has checked 379 foreigners at the school and conducted two operations so far, and had not found any evidence of alleged wrongdoing. On allegations that some of the foreigners could be using multiple passports, he said authorities had not uncovered any such cases. However, the immigration system could only detect the use of multiple passports if a person entered or left Malaysia using different travel documents. When the matter first made headlines last week, Balaji – the former chief technology officer of cryptocurrency exchange Coinbase – said Network School had put on hold a planned RM500 million (US$122 million) expansion in Malaysia. “If you don’t want our investment, or those of our colleagues at billion dollar funds and trillion dollar companies, we will of course respect your wishes, and reallocate our capital to other countries instead,” Balaji wrote on social media platform X last Thursday. [Image text:] Network School ns.com