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SHAH ALAM - The Johor government has ordered a comprehensive investigation into the operations of Forest City’s Network School following allegations that Israeli nationals participated in the programme using second-country passports.
The investigation will examine potential security, immigration and regulatory concerns arising from the claims.
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 go against Malaysian laws, sovereignty and national interests.
"The Johor government will not allow any party to make this state a platform to bring in ideologies or movements that are contrary to the laws, sovereignty and interests of Johor and Malaysia
“The state calls on the Home Ministry, Immigration Department, Customs Department, police and other relevant security agencies to conduct a thorough investigation into the matter,” he said in a Facebook post today.
He said the investigation would focus on several aspects, including the identities and nationalities of those involved, their travel documents, the alleged use of second passports, the types of passes issued, their reasons for entering Malaysia and whether their actual activities were consistent with their declared purpose of entry.
The Johor government has also instructed the Higher Education Ministry, Digital Ministry and relevant regulatory agencies to verify the operational status of Network School, including whether its programmes require registration or approval under Malaysian law.
At the state level, the Iskandar Puteri City Council (MBIP), Johor Land and Mines Office and other relevant agencies have been directed to assess the initiative's compliance with existing regulations.
“These include compliance with premises licence conditions, building use, land use conditions, accommodation, business activities and any other applicable legal or regulatory requirements.
"If investigations find any breaches of the law, misuse of passes, violations of licence or land conditions, or elements that could jeopardise the state's interests and national security, firm action must be taken without compromise," he said.
The investigation follows claims circulating on social media platform Threads alleging that Network School had recruited Israeli nationals who entered Malaysia using second-country passports.
The claims have sparked public debate over the initiative's screening process, curriculum and the backgrounds of individuals associated with the programme.
Some social media users also alleged that prospective participants were asked questions related to Israel, military technology and politics during the selection process.
Network School is a private residential startup community in Forest City, Johor, founded by Silicon Valley investor and former Coinbase chief technology officer Balaji Srinivasan.
According to the project’s website, it describes itself as a “frontier community for techno-optimists” where founders, developers, researchers and technology entrepreneurs live and work together while building startups and exploring new forms of digital communities.
The programme is linked to Srinivasan’s concept of a “network state” — a digitally connected community that could eventually establish physical settlements supported by shared social and economic systems.
The initiative gained attention in Malaysia after attracting international entrepreneurs and technology workers to Forest City, which was selected as a location due to its existing infrastructure and proximity to Singapore.
However, critics have raised questions over the concept’s governance structure, regulatory oversight and potential implications.
The Johor government said it would continue monitoring the matter through relevant authorities and ensure all actions are taken within the framework of Malaysian law.
