Balaji Srinivasan's Network School eyes Kazakhstan after Malaysia license revoked

Balaji Srinivasan's Network School, a community for "digital nomads," is planning to establish its first campus in Kazakhstan following regulatory action against its operations in Malaysia. A memorandum of understanding was signed between Kazakhstan's Minister of Digital Development, Innovation and Aerospace Industry, Zhaslan Madiyev, and Srinivasan.

The move comes after the Iskandar Puteri City Council revoked the business license of NSO Malaysia Sdn Bhd, which operates the Network School's Forest City campus, citing alleged breaches of licensing conditions and premises usage requirements. Consequently, the Malaysia Digital Economy Corporation (MDEC) announced it would revoke the company's Malaysia Digital status, a recognition that offers tax incentives and other benefits to qualified tech companies.

Johor State Chief Minister Onn Hafiz Ghazi has called for a federal investigation into whether the Network School violated immigration laws, emphasizing Johor's strategic importance as a gateway to Singapore. Srinivasan, however, denied reports of the school shutting down, attributing the notices received to minor issues like changing a sign's text and a coworking site's licensing.

Kazakhstan is actively positioning itself as a technology hub, with plans for a "crypto city" in Alatau, and aims to attract global talent through measures like expedited visas and streamlined redomiciliation. Haseeb Qureshi, managing partner at Dragonfly Capital, commented that the situation validates the "network state" thesis, allowing Srinivasan to negotiate better terms with a new state for a similar venture.