Network School in Johor’s Forest City ordered to cease operations after business licence revoked

Tech startup Network School in Johor's Forest City has been ordered to cease all operations following the revocation of its business license by local authorities. The Iskandar Puteri City Council (MBIP) made the decision on Tuesday, marking a significant turn after the school's American founder, Balaji Srinivasan, stated over the weekend that operations would continue.

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The enforcement action was only taken after complaints and information were verified, inspections were conducted, non-compliance was identified and all legal processes were completed.

The MBIP convened a special council meeting after conducting inspections at Network School's premises between July 12 and July 20. These inspections were prompted by claims that Israeli nationals were among the school's participants and had entered Malaysia using passports from other countries. Malaysia, a strong supporter of the Palestinian cause, does not maintain diplomatic relations with Israel and prohibits the entry of Israeli passport holders. While authorities have not yet found any travel-document violations, Johor authorities determined that Network School had violated licensing conditions and premises usage requirements, issuing two notices last week.

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When non-compliance is identified, action must be taken without compromise.

Johor Chief Minister Onn Hafiz Ghazi publicly backed the MBIP's decision, stating it was in full compliance with existing legal provisions. He emphasized that enforcement actions were taken only after complaints were verified, inspections conducted, non-compliance identified, and all legal processes completed. Ghazi stressed that while Johor welcomes high-quality investment, no entity can be placed above the country's laws. He urged relevant security agencies, including the Home Ministry and Immigration Department, to continue their investigations into potential offenses such as passport misuse, identity misrepresentation, or breaches of entry conditions.

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no investor, company or organisation can be placed above the sovereignty of the country's laws

Ghazi also called upon the Digital Ministry and the Malaysia Digital Economy Corporation (MDEC) to review any involvement with Network School. He highlighted the strategic importance of Johor as a gateway to the country, bordering Singapore, and stressed the need for immediate, firm, and uncompromising action against any weaknesses or abuses in the immigration system. The state government, he affirmed, will not compromise on any violation of law or matters that could undermine national security, sovereignty, or interests.

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This matter cannot be taken lightly, especially when Johor is a strategic entry point to the country bordering Singapore. Any weakness or abuse of the immigration system must be addressed immediately, firmly and without compromise.