KUALA LUMPUR, July 17 — U.S. investor and Network School founder Balaji Srinivasan has raised concerns that an immigration inspection at a Malaysian "digital nomad" community, triggered by anonymous social media allegations of legal violations, could jeopardize Malaysia's ambitions to become a global technology hub.

The Immigration Department conducted inspections and found that members of the Network School possessed valid travel documents. This followed a probe into online claims that Israelis were among the community members in violation of local laws. The department confirmed on Wednesday that 266 foreigners inspected had valid documents, though further compliance checks remain ongoing.

Srinivasan, a former Coinbase chief technology officer, questioned on social media whether the global tech community should continue investing in Malaysia. He noted that his experience would be relevant to executives at major tech companies including Google, Amazon, Apple, and Microsoft, as well as founders of tech unicorns like Coinbase and Solana, and investors at leading venture capital funds.

He stated that his planned investments in Malaysia are currently on hold pending assurances that such incidents will not recur, and he has requested a meeting with the prime minister's office. Srinivasan also described the immigration officials as polite and professional but remarked, "the process is the punishment."

Malaysia launched a roadmap in 2024 to establish itself as a global tech startup hub, featuring attractive visa programs for foreign talent and investors, alongside initiatives to simplify business setup and attract venture capital.

Reuters has sought comment from the prime minister's office regarding Srinivasan's statements.

Sources