Network School to open Kazakhstan campus, Balaji announce - hours after Johor revokes Forest City operating licence

JOHOR BAHRU – Network School founder Balaji Srinivasan has announced plans to establish a new campus in Kazakhstan, less than a day after Johor authorities revoked the operating licence of NSO Malaysia Sdn Bhd (Network School) in Forest City.

In a post on X at 12.19am on July 22 (Malaysian time), Balaji said a memorandum of understanding (MoU) had been signed between the Republic of Kazakhstan and Network School.

“I am pleased to announce that a memorandum of understanding has been signed between the Republic of Kazakhstan and Network School.

“Our new campus will become a haven for global techno-optimism, with expedited visas, streamlined redomiciliation and active recruitment of talent,” he wrote.

The announcement was accompanied by a highlight video of the signing ceremony and screenshots of the official announcement from the Kazakhstan government.

According to an English translation of the statement shared by Balaji, Kazakhstan’s Ministry of Digital Development, Innovation and Aerospace Industry said it had entered into a strategic partnership with Network School, an international education initiative founded by former Coinbase chief technology officer Balaji Srinivasan and supported by investors from more than 500 technology companies.

The ministry said it had signed an MoU with Network School to cooperate in the fields of artificial intelligence, innovation, technology entrepreneurship and human capital development.

The statement described the agreement as a strategic collaboration aimed at strengthening cooperation in developing AI capabilities, fostering technological innovation and supporting talent development.

Balaji’s announcement, however, made no reference to Network School’s Malaysian campus in Forest City or its future following the Johor government’s decision to revoke the company’s business licence.

Yesterday, Johor Menteri Besar Datuk Onn Hafiz Ghazi announced that NSO Malaysia Sdn Bhd had been ordered to cease all operations after its business licence was revoked by the Iskandar Puteri City Council effective July 22.

The state government said the decision followed a special full council meeting after the council reviewed inspection reports, enforcement findings and representations submitted by the company.

The controversy surrounding Network School emerged after allegations circulated on social media claiming that the programme had been attended by foreign nationals, including individuals allegedly holding Israeli citizenship who entered Malaysia using passports from a second country.

The Immigration Department subsequently carried out inspections involving 266 foreign nationals from 40 countries in Forest City.

Onn Hafiz stressed that while Johor welcomed quality investments, no company or organisation would be allowed to operate above Malaysia’s sovereignty or the rule of law.

He also called on the Home Ministry, Immigration Department, the police and other enforcement agencies to continue investigations into allegations involving misuse of second passports, identity misrepresentation, breaches of immigration conditions and other possible offences under Malaysian law.

The Menteri Besar further urged the Digital Ministry and the Malaysia Digital Economy Corporation (MDEC) to review Network School’s Malaysia Digital status if it was found to have breached any conditions attached to the recognition.

He said the state government would continue strengthening inter-agency coordination and due diligence to ensure all foreign investments and international initiatives comply with licensing, immigration, security and legal requirements.

According to Onn Hafiz, the matter had also been presented to and received the consent of His Majesty Sultan Ibrahim, King of Malaysia, and the Regent of Johor, Tunku Mahkota Ismail.