The Iskandar Puteri City Council (MBIP) revoked the business licence of NSO Malaysia Sdn Bhd, which operates Network School in Forest City, Johor, and ordered it to cease operations effective July 22, 2026 [1, 2, 3]. This decision followed four inspections conducted on July 12, 14, 19, and 20 that uncovered breaches of licensing conditions and unauthorized use of premises [1, 2, 4].

One premise was found operating without a valid business licence, and activities were carried out beyond what was approved under an office-use licence for another unit [1, 5, 6]. The school's advertising licence was also revoked because its signboard did not match the approved licence details [1, 2, 4].

Johor Menteri Besar Datuk Onn Hafiz Ghazi said the government fully supports MBIP's enforcement after verifying complaints and completing due legal process. He emphasized, "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" [1, 7].

The Malacca Digital Economy Corporation (MDEC) also revoked NSO Malaysia's Malaysia Digital status due to breaches involving valid licences [3, 4]. Meanwhile, the Johor government and local authorities have called on agencies including the Home Ministry, Immigration Department, and police to probe alleged misuse of passports and immigration offences linked to Network School [2, 7, 8]. In particular, the Immigration Department is investigating about 430 individuals linked to the school, including 19 identified as Israeli nationals using second-country passports [2]. Malaysian law restricts entry of Israeli passport holders without special permits.

Network School's operations in Forest City halted on July 22, with premises found deserted and closure notices posted [5, 6]. Founder Balaji Srinivasan announced on the same day a memorandum of understanding to open a new campus in Kazakhstan [4].

Digital Minister Gobind Singh Deo stated inspections within the Digital Ministry’s jurisdiction found all Network School applications compliant. He underlined that business licences and premises fall under Johor state jurisdiction, while immigration is handled by the Home Ministry [9, 10, 11]. Johor’s Regent Tunku Ismail Sultan Ibrahim echoed that state and local authorities will investigate relevant matters, leaving foreign entry issues to the Home Ministry [9].

The shutdown came amid social media claims linking Network School to Israeli cryptocurrency investment agendas, though these remain unproven [1, 3, 4]. The closure and revocation mark the latest enforcement action following multiple audits and investigations.

MBIP conducted four inspections in mid-July before revoking licences and issuing a Stop Business Notice on July 21 [1, 2, 4]. Network School ceased operations the next day [5, 6]. MDEC revoked NSO Malaysia’s digital status also on July 21 [3, 4]. The authorities’ follow-up investigations continue, focusing on passport misuse and immigration compliance.