PETALING JAYA: Network School has put a planned RM500mil expansion in Malaysia on hold, with founder Balaji Srinivasan saying the company will not proceed without assurances that the controversy surrounding its Forest City campus will not recur.
The startup-focused international technology community is also seeking a meeting with Prime Minister Datuk Seri Anwar Ibrahim to discuss a memorandum of understanding (MoU) with the Malaysian government, Balaji said in a post on X.
"At this point, all further investment we were planning to make in Malaysia is on hold until we get sufficient assurance that such issues won't recur," he wrote.
"So are the investment plans of many of our friends, including the execs and investors at global tech firms that we brought to Forest City."
Balaji said Network School had been on the verge of expanding its community with an investment of more than RM500mil and launching a global merit scholarship with Replit founder and chief executive officer Amjad Masad.
He said the company had already invested more than RM100mil in its Forest City campus without government funding, employing dozens of Malaysians and supporting local technology startups and businesses.
Balaji said he established Network School in Malaysia in October 2024 after being encouraged by the country's pro-technology policies, including the KL20 initiative, digital nomad and investor visa programmes, and the Johor-Singapore Special Economic Zone.
He said the community had since attracted thousands of engineers, investors and entrepreneurs from more than 70 countries.
The controversy arose after an anonymous social media account accused Network School of harbouring undocumented migrants shortly before the Johor state election.
Malaysian authorities inspected the campus on July 14 and checked hundreds of passports belonging to people from 40 countries, including dual-passport holders.
The Immigration Department later said all 266 foreign nationals inspected at Forest City possessed valid immigration documents based on its records.
On Wednesday (July 15), Anwar said Malaysia would not compromise on its policy of refusing entry to Israeli nationals and that anyone found to have entered the country would be deported immediately.
"If there are Israeli citizens, because we do not recognise Israel, they will be expelled immediately," Anwar told reporters.
While describing the Malaysian officers as "very polite and professional", Balaji said the investigation had still damaged the company's reputation.
Balaji said the proposed MoU would reaffirm Network School's commitment to Malaysian laws and the country's sovereignty, while helping restore confidence among international technology investors.
"If Malaysia still wants continued global tech investment, if it wants to be a top 20 tech hub, if it wants us to revitalise Forest City, then we request an audience with the Prime Minister's office," he said.
"We aren't asking for any money — just a meeting, to help restore confidence in Malaysia as an investable jurisdiction."
He said the company would respect Malaysia's decision but would move its capital elsewhere if its investment was no longer wanted.
"Alternatively, if you don't want our investment, or those of our colleagues at billion-dollar funds and trillion-dollar companies, we will of course respect your wishes, and reallocate our capital to other countries instead," he said.
