Network School, a tech co-living and co-working project founded in 2024 by Balaji Srinivasan in Johor's Forest City, is under scrutiny after allegations surfaced in July 2026 that it hosted Israeli nationals using second-country passports to bypass Malaysia's ban on Israeli citizens [1, 2, 3]. The project promotes a hybrid "network state" lifestyle combining digital community, physical co-living, and a structured program for remote workers and tech entrepreneurs, charging about US$1,500 monthly for accommodation, meals, gym access, coworking, and learning opportunities [1, 2, 3, 4].

Malaysia and Israel have no diplomatic ties, and Malaysian law bars Israeli passport holders unless granted special permission by the Home Ministry [1, 2, 3, 5]. The allegations raised national security and sovereignty concerns among Malaysian political leaders and activist groups, with Prime Minister Anwar Ibrahim publicly stating on July 15 that any Israeli nationals involved with Network School "will be deported immediately because Malaysia does not recognise Israel" [1, 2, 3, 5]. He repeated, "We will not allow it. If there are Israeli nationals, since we do not recognise Israel, they will be deported immediately" [5].

The Home Ministry launched a full investigation into immigration document misuse connected to Network School on July 14, 2026 [1, 2, 3]. The Immigration Department reported on July 15 that it was investigating 266 foreigners from 40 countries who were linked to the project; initial checks found all held valid travel documents, but the inquiry continues [1, 2, 3].

Balaji Srinivasan, the founder and former Coinbase CTO, described Network School as "Silicon Valley outside Silicon Valley" and a "frontier community for techno-optimists," promoting a lifestyle of learning from tech leaders, physical fitness, remote earning, and social activities [5, 4]. His video promotion of the project in July triggered public backlash in Malaysia [5].

The government’s investigation and Prime Minister Anwar Ibrahim’s firm statements mark a decisive step. The authorities have pledged immediate deportations if Israeli nationals are confirmed among Network School residents or participants [1, 2, 3, 5].