‘Hopes are dashed’: Network School members express frustration after Forest City campus ordered to close
Some members of the tech startup community told CNA they are cutting short their stay in Johor and returning home after authorities ordered the Network School to cease operations immediately.
An Iskandar Puteri City Council (MBIP) officer seals Network School’s premises in Forest City, Johor, on Jul 22, 2026. (Photo: CNA/Zamzahuri Abas)
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ISKANDAR PUTERI, Johor: The steady hum of conversations at the Network School cafe inside Forest City’s Marina Hotel was punctuated by emotional farewells on Wednesday (Jul 22) morning.
Dozens of members of the co-living startup community wheeled packed suitcases through the hotel lobby, embracing friends they had met just weeks prior before hurrying into waiting taxis.
Some were headed for airports, others to new destinations. Few knew if they would ever return to Malaysia.
Just hours after Johor authorities on Tuesday ordered the Network School to cease operations following the revocation of its business licence, the mood among members had shifted from uncertainty to resignation.
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Among those preparing to leave was Igor, a Russian entrepreneur in his 20s who works in cryptocurrency and asked to be identified only by his first name.
He told CNA he would be flying back to Moscow on Thursday after spending the past month living and working remotely in Johor’s Forest City.
“It is a very bad situation. The whole experience with Network School had been 10 out of 10, (but) just like that, everything is gone and our hopes are dashed,” he said.
Igor described his time in Johor as “stellar”, saying he had grown to love both Malaysia and the southern state and had even planned to spend more time travelling around the country.
But the events of the past two weeks, he said, had changed his perception of Malaysia.
“It’s unfortunate. I was ready to spend some time here, maybe even explore Kuala Lumpur. But this episode shows me that perhaps Malaysia is not ready to welcome foreign digital nomads,” he said.
Most Network School members whom CNA spoke to on Wednesday expressed frustration over the abrupt shutdown, saying they had been forced to rearrange travel plans on short notice.
Some said they would be returning to their home countries immediately, while others were weighing their next move.
Local media had previously reported that there were some 260 foreigners living in the purpose-built community.
They pay anywhere from US$1,500 to US$3,000 a month for accommodation, meals and access to facilities and activities such as lectures, hackathons, coding workshops, language classes and wellness programmes. According to its website, the Network School dubs itself as a “frontier community for techno-optimists”.
The order by the Iskandar Puteri City Council (MBIP) marks the latest twist in the controversy surrounding the tech-focused community after its American founder, Balaji Srinivasan, reassured over the weekend that operations would continue as the organisation addresses concerns raised by authorities.
MBIP had convened a special full council meeting following inspections and enforcement checks at the Network School premises between Jul 12 and Jul 20, local media reported.
Scrutiny surrounding Network School intensified after allegations surfaced that Israeli nationals were among its participants and had entered Malaysia using passports issued by other countries. Malaysia does not have diplomatic relations with Israel and bars Israeli passport holders from entering the country.
Authorities have said they have not uncovered any travel document offences thus far.
Last Saturday, Balaji said the Network School would enter a “remedial period” to address issues raised by authorities while continuing operations in Johor.
However, Johor authorities later said they found that the organisation had breached licensing conditions and premises usage requirements, issuing two notices before ordering it to cease operations.
On Tuesday, Johor Chief Minister Onn Hafiz Ghazi backed MBIP’s decision to close the school and stressed that it was in accordance with existing legal provisions. He declined to take questions on the matter at an event on Wednesday.
CNA has reached out to Network School for comment on the latest closure order.
For Chris, a Johorean and Network School member who asked to be identified only by his first name, the future now looks uncertain.
He said members were taking different paths following the closure.
“It’s on a case-by-case basis, but largely most of the members are heading back,” said the business owner who is in his 30s.
Some are expected to relocate to Kazakhstan, where Network School plans to open another campus, while others intend to remain in Malaysia and continue working independently.
“I’m a Malaysian, so I can continue staying here. But it’s frustrating that the school has stopped operations,” he added.
On his X account, Balaji on Wednesday had feted about the signing of a memorandum of understanding with the Central Asian country, calling the planned new campus “a haven for global techno-optimism … and active recruitment of talent”.
He did not appear to acknowledge the Network School’s shutdown in Johor.
Meanwhile, a Network School member – who declined to be named – said he was making his way to Singapore’s Changi Airport to catch a flight home after receiving less than a day’s notice of the organisation’s shutdown.
The Canadian was spotted dragging a big luggage and was headed into a taxi.
“It’s not cool how we’ve been treated. Let’s see what happens, but for now it’s better we head back,” he said.
“I don’t think the state government has been fair to us, and it’s not a good look for Malaysia.”
EMPTY PREMISES
By Wednesday morning, it was clear that the Network School had shut its operations in Forest City for good.
Its logos and signboards had been removed from around the township, while its co-working space, spread across four adjoining shoplots, had been sealed.
Office furniture had already been cleared out by around 11am, leaving the premises empty.
About 40 minutes later, officers from MBIP arrived to inspect the site before affixing an official closure notice. The Network School’s main signboard had already been taken down before the officials arrived.
Locals in Johor’s Forest City had previously told CNA that the startup community has boosted businesses but added that anyone found breaching Malaysia’s immigration laws should face action.
The latest development with its closure has also unsettled some expatriates living in Forest City.
An American teacher at an international school in the township, who is not affiliated with the Network School, said the startup’s arrival had injected new life into an area long associated with empty apartments and quiet streets.
“I’m not part of the Network School, but I think it gave Forest City a breath of fresh air,” he said.
“The place had been deserted before they came, but at least there was a more vibrant community.”
He added that the incident raises broader questions about Malaysia’s openness to foreign professionals.
“I think Malaysia has to decide whether it wants to be more open to talented foreigners coming here and contributing to its economy.”
Source: CNA/ia(as)
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