Forest City tech commune Network School pauses $160m Malaysia investment amid probe

Network School, an international technology community, has placed a planned RM500 million (S$160 million) expansion in Malaysia on hold. Founder Balaji Srinivasan cited concerns over the recurrence of controversy surrounding its Forest City campus as the reason for the pause. Srinivasan stated that further investment will not proceed without assurances from the Malaysian government.

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At this point, all further investment we were planning to make in Malaysia is on hold until we get sufficient assurance that such issues won’t recur.

Srinivasan is seeking a meeting with Malaysian Prime Minister Anwar Ibrahim to discuss a memorandum of understanding (MoU). He indicated that the investment plans of numerous associated global tech firms and their executives are also on hold. Network School had been preparing to expand its community with over RM500 million in investment and launch a global merit scholarship with Replit CEO Amjad Masad.

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So are the investment plans of many of our friends, including the execs and investors at global tech firms that we brought to Forest City.

The company has already invested more than RM100 million in its Forest City campus, without government funding, creating jobs for Malaysians and supporting local tech startups. Srinivasan established Network School in Malaysia in October 2024, encouraged by pro-technology policies like the KL20 initiative, digital nomad visas, and the Johor-Singapore Special Economic Zone. The community has since attracted thousands of engineers, investors, and entrepreneurs from over 70 countries.

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If Malaysia still wants continued global tech investment, if it wants to be a top 20 tech hub, if it wants us to revitalise Forest City, then we request an audience with the Prime Minister’s office.

The controversy emerged after an anonymous social media account accused Network School of harboring undocumented migrants shortly before the Johor state election. Malaysian authorities inspected the campus on July 14, checking passports of individuals from 40 countries. The Immigration Department later confirmed that all 266 foreign nationals inspected possessed valid immigration documents according to their records. Prime Minister Anwar Ibrahim reiterated Malaysia's policy of refusing entry to Israeli nationals, stating they would be deported if found in the country. Srinivasan described the Malaysian officers as polite and professional but noted the investigation damaged the company's reputation. He believes the proposed MoU would reaffirm Network School's commitment to Malaysian laws and sovereignty, helping to restore international investor confidence.

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We aren’t asking for any money – ju