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Malaysia Shuts Down American Investor’s Tech Enclave Over Israel Rumors

Published: Jul. 30, 2026 4:30 p.m. GMT+8

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Forest City apartments in Johor, Malaysia, on Sept. 1, 2023. Photo: VCG

Malaysian authorities abruptly shut down a buzzy experimental enclave for global tech workers founded by an American venture capitalist, dealing a blow to a struggling real-estate mega-project trying to reinvent itself.

Network School, a co-living community spearheaded by former Coinbase global Chief Technology Officer Balaji Srinivasan in the Chinese-backed Forest City development, had its operating licenses revoked late last month.

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What Happened When

2016：: Forest City development was launched by Chinese developer Country Garden Holdings Co. Ltd.

August 2023：: Prime Minister Anwar designated Forest City a Special Financial Zone, introducing tax incentives for family offices.

August 2024：: Balaji Srinivasan launched Network School in Forest City, assembling a first cohort of about 150 members.

2024：: Government tied residency visas to minimum property purchases of 500,000 ringgit in the zone, drawing back retail and commuter foot traffic.

Late 2025：: Under a restructuring plan approved by a Hong Kong court, Country Garden stated its intent to transfer Forest City equity to the family of Chairwoman Yang Huiyan for $50 million.

Before July 2026：: Online rumors alleged that Israeli citizens were living at the Network School site.

Late June 2026：: Network School's operating licenses were revoked by Malaysian authorities.

July 2026：: Social media posts alleged that Israeli passport holders had entered the Network School community, characterizing Balaji Srinivasan as a proponent of 'tech Zionism.'

July 15, 2026：: Prime Minister Anwar Ibrahim announced the government was investigating the camp, warning of immediate deportation for any Israeli citizens found operating there.

July 16, 2026：: Balaji Srinivasan posted on social media that the project had invested more than 100 million ringgit ($24.43 million) and created dozens of local jobs over 18 months; he planned to invest an additional 500 million ringgit.

July 21, 2026：: The Iskandar Puteri City Council revoked all of Network School's permits, declaring its actual operations mismatched its business license applications and violated advertising regulations.

July 22, 2026：: Balaji Srinivasan announced on X that Network School had signed a memorandum of understanding with Kazakhstan, relocating the project there.