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Network School Closed in Forest City After Licences Revoked

Local inspections found breaches of licensing and approved premises use that led authorities to order the campus shut, raising fresh questions about Malaysia’s approach to foreign tech projects.

Overview

  • Iskandar Puteri City Council revoked NSO Malaysia’s business and advertising licences and ordered Network School to cease operations, with the closure taking effect Wednesday.
  • The council said inspections carried out between July 12 and July 20 found the operator had breached licence conditions and used premises in ways that did not match approved office use.
  • Immigration checks identified about 430 people linked to the community, officials say 379 were checked and 210 remain in Malaysia while 19 linked foreigners are unaccounted for, and no travel‑document offences have been confirmed so far.
  • Founder Balaji Srinivasan has paused a planned RM500 million expansion in Malaysia and announced a memorandum of understanding with Kazakhstan to set up a new campus that offers expedited visas and relocation support.
  • The closure emptied the Forest City site, forced members to leave at short notice, and triggered ongoing probes by federal and state agencies plus a likely review of the project’s Malaysia Digital status, with potential knock‑on effects for investor confidence and talent mobility.