The Network School, a digital nomad hub founded in October 2024 in Forest City, Johor, Malaysia, was abruptly shut down by Malaysian authorities on July 28, 2026. Established by Balaji Srinivasan, an American tech entrepreneur and former CTO of Coinbase, the community catered to online creators, personal trainers, and remote workers offering hotel-like amenities for a monthly fee of US$1,500 (approximately MYR 2,150).

The closure followed an investigation by Malaysia's Ministry of Home Affairs, reportedly triggered by social media posts from the activist group Malaysian Protest 4 Palestine. The group alleged that the Network School had become "a gathering place for Israeli entrepreneurs." Subsequent checks revealed that one individual held Israeli citizenship and was asked to leave.

Local media reported no immigration breaches among 266 foreign citizens, though investigations into 11 dual nationals continued. Estimates placed the number of residents between a few thousand and no more than 10,000.

According to the Forest City Malaysia blog updated in January 2026, slow growth in the area was attributed to stricter foreign property purchase rules and the global economic slowdown caused by COVID-19.

Balaji Srinivasan stated that the Network School had invested over 100 million Malaysian ringgit (about US$34 million) into the Malaysian economy and employed dozens of Malaysians across various levels. Malaysian authorities emphasized the need for sustained activity from people, businesses, and institutions for such communities to truly take root, noting concerns about where entrepreneurship ends and political projects begin.

Sources