Network School ordered to cease operations at Forest City site over licensing breach; founder says operations continue

The Johor government has issued a cessation order to the Network School's startup community in Forest City, citing operations at one of its premises without a valid business license. The Iskandar Puteri City Council also issued a notice regarding non-compliant advertising signboards.

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But our members are otherwise unaffected

Johor Chief Minister Onn Hafiz Ghazi stated on Facebook that an inspection found the company operates at two premises. While one has a valid business office license, the other was found to be operating without the necessary municipal license, despite being owned by a local citizen. The state government has pledged to investigate further and take enforcement action if any breaches of laws or regulations are uncovered.

However, American investor Balaji Srinivasan, who is behind the organization, disputed reports of the school shutting down. He stated on X that Network School received two notices and has a "remedial period for both issues." Srinivasan clarified that members are unaffected and that the notices pertain to changing a sign's text and a coworking site operating across two adjacent units, where one side reportedly had a license and the other did not.

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The first tells us to change the text of a sign. The second says that our coworking site, which was created by joining two adjacent units, evidently has a valid license on the left-hand side but not the right-hand side.

This development comes amid a high-profile probe into Network School by Malaysia's Home Ministry, prompted by allegations that some participants might be Israeli nationals. Malaysia, a strong supporter of the Palestinian cause, bars entry to Israeli passport holders due to the lack of diplomatic relations, though it reportedly has no specific laws against Israelis using second-country passports. The Chief Minister urged federal authorities to make a clear and final decision on the nationalities of the participants.

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We have a remedial period for both issues, and will remediate them shortly.