The Iskandar Puteri City Council (MBIP) revoked the business licence of NSO Malaysia Sdn Bhd, operator of Network School, and ordered it to cease operations effective July 22, 2026 [1, 2, 3]. The licence was cancelled due to breaches including advertising non-compliance and operating in ways that deviated from licence conditions [1, 2, 3].
Network School, based in Forest City, Iskandar Puteri, functioned as a co-living and co-working space targeting digital nomads and remote workers, with memberships starting at US$1,500 per month [1]. Prior to the licence revocation, Malaysian authorities inspected the campus on July 14, 2026, checking passports of hundreds of occupants from 40 countries as part of the investigation [1].
On July 22, MBIP shut down and sealed the Network School premises following the revocation order [2, 3]. By July 27, no appeal had been submitted by Network School to MBIP despite being given 14 days from that date to apply for one; Johor Housing and Local Government Committee chairman Datuk Mohd Jafni Md Shukor confirmed the absence of any appeal [1, 3].
"It is cancelled completely. Simply put, they are illegal," said Datuk Mohd Jafni. "If they form another company and meet the set conditions, it can be considered, but there has been no appeal so far" [2]. MBIP said a new application could be considered if the operator creates a new company and complies with licensing conditions [2, 3].
Johor state government and MBIP emphasized their continued welcoming stance towards investors, coupled with strict enforcement of local laws and by-laws [1, 2, 3]. The 14-day appeal period from July 27 marks the deadline for Network School to respond, after which the licence cancellation will remain final [3].
