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SHAH ALAM – Network School founder Balaji Srinivasan said Malaysia was selected as the base for his startup community because the global technology landscape is no longer centred solely on the United States (US).
He said Silicon Valley’s increasing decentralisation has created new opportunities for other countries to attract entrepreneurs, skilled talent and investment.
Speaking in an interview on the Keluar Sekejap podcast hosted by Shahril Hamdan, which was also shared on the Keris Silicon Instagram accounts, Srinivasan explained that although the internet originated in the US, it has evolved into a global ecosystem shaped by international users and talent.
While many people still view the internet as fundamentally American because of its origins, he said that reality has changed significantly over the past few decades.
"The first answer is, of course, it's American. It arose out of Defense Advanced Research Projects Agency (Darpa) grants and it arose from the American military, the US education system and the rise of Silicon Valley.
“However, that perspective no longer reflects how the internet operates today. There is a Chinese internet. There is a Russian internet. There is a Spanish-language internet. There are all these different internets,” he mentioned.
Srinivasan said even the world's largest American technology companies increasingly rely on global talent and serve predominantly international users.
Using WhatsApp as an example, he said the platform's billions of users demonstrate how technology companies have expanded far beyond their country of origin.
"The companies are American, but the talent is international. WhatsApp has around three billion users. The overwhelming majority are not Americans,” he added.
He said this transformation means many technology companies should now be viewed as global platforms rather than exclusively American businesses.
The Network School founder also mentioned that global technology talent is no longer flowing exclusively towards Silicon Valley.
"As Silicon Valley decentralises, there are opportunities for countries like Malaysia. I've invested nearly RM100 million.
"Our goal is to support white-collar workers, blue-collar workers and local startups,” he said.
He said this changing environment was one of the key reasons Network School chose Malaysia as one of its locations.
He added that Malaysia offered several advantages compared with traditional technology hubs, citing political stability, strong family values and quality of life.
"We think Malaysia has stability, strong family values and does not have some of the social problems you see in San Francisco, like widespread drug addiction and violence,” he said.
Srinivasan said these factors made Malaysia an attractive destination for entrepreneurs seeking an alternative environment in which to build companies and communities.
Network School initially promoted Forest City in Johor as a global innovation hub where founders, developers, researchers and technology entrepreneurs could live together while building startups.
However, the project has recently become the subject of public scrutiny following allegations circulating on social media platform Threads claiming Israeli nationals participated in the programme by entering Malaysia using second-country passports.
Under Malaysia's long-standing immigration policy, Israeli passport holders are prohibited from entering the country without prior written approval from the Home Ministry.
Additional online allegations also claimed prospective participants were asked questions relating to military technology, Israel and politics during the selection process.
The Johor government has since ordered a comprehensive investigation into the initiative.
Johor Menteri Besar Datuk Onn Hafiz Ghazi said the state government viewed the allegations seriously and would not allow Johor to become "a platform for activities or movements that are contrary to Malaysian laws, sovereignty and national interests."
Authorities and relevant regulatory agencies have been tasked with verifying participants' identities, nationalities, travel documents and the project's compliance with licensing, land use and operational requirements.
Meanwhile, Muar MP Syed Saddiq Syed Abdul Rahman said he would personally examine the matter before raising issues affecting the rakyat when Parliament reconvenes.
His response was welcomed by Boycott, Divestment and Sanctions (BDS) Malaysia, which said it reflected the responsibility of elected representatives in ensuring transparency and accountability.
