Key facts
- Network School founder Balaji Srinivasan is seeking a deal with Malaysia.
- Malaysian authorities are investigating the Forest City tech community.
- The probe concerns allegations of hosting Israeli citizens.
- Srinivasan threatened to relocate the community if not welcomed.
- Further investment in Malaysia has been put on hold.
Network School founder Balaji Srinivasan is seeking a memorandum of understanding with Malaysia after authorities launched an investigation into his Forest City tech community. The probe was prompted by allegations that the community was hosting Israeli citizens using second passports, which would violate immigration laws. The Malaysian Home Affairs Ministry confirmed the investigation on Tuesday, though initial checks indicated that all 266 foreigners within the community held valid documents.
Srinivasan stated that the agreement would provide legal certainty for Network School to continue investing in Malaysia. He conveyed in a video message to Prime Minister Anwar Ibrahim on Thursday that if the community is not made to feel welcome, it could relocate its capital to other countries. He announced that a planned $122 million expansion of the community is on hold until sufficient assurances are provided that such issues will not recur.
The claims against Network School originated from a social media post by the activist group "Malaysian Protest 4 Palestine," which accused the school of being a gathering place for Israeli entrepreneurs. Malaysia, a Muslim-majority country, prohibits Israeli passport holders from entering without specific permission from the Home Affairs Ministry due to the absence of diplomatic relations.