Network School founder pauses Malaysia investment plans following Forest City controversy
JOHOR BAHRU: Network School founder Balaji Srinivasan has announced that he is suspending all planned investments in Forest City following controversy surrounding the participation of Israeli-linked individuals in one of the organisation’s programmes, saying the episode has undermined investor confidence.
The entrepreneur said the decision also extends to several international technology executives and investment partners associated with the initiative, who have likewise chosen to postpone prospective investments in Malaysia until there is greater certainty over the business environment.
According to Balaji, the group intends to defer new commitments until it receives assurances that similar incidents will not recur in a manner that could affect foreign investors operating in the country.
In a statement posted on social media platform X, Balaji claimed that the controversy began after an anonymous account identified as MP4P published an Instagram post a day before the Johor state election on July 11, alleging that Network School was harbouring undocumented migrants.
He described the allegation as false and said the claims quickly gained widespread attention, eventually leading authorities to conduct inspections at the Forest City campus on July 14.
Balaji said officials examined the travel documents of hundreds of participants representing about 40 countries, including individuals holding dual citizenship.
According to him, authorities later confirmed on July 15 that all passports and travel documentation inspected during the operation were valid.
He said Network School fully cooperated with the authorities throughout the inspection process and maintained that the organisation had nothing to conceal.
Balaji added that the investigation nevertheless had a significant impact on the company’s reputation and affected the confidence of existing and potential investors considering future projects in Malaysia.
He argued that even when allegations are ultimately found to be unfounded, the investigative process itself can create uncertainty for businesses and discourage investment decisions.
The controversy emerged after social media users questioned the presence of Network School in Forest City, alleging that the programme had attracted foreign entrepreneurs, including Israeli citizens travelling on passports issued by a second country.
Earlier this week, Johor Menteri Besar Datuk Onn Hafiz Ghazi called on the relevant federal authorities to investigate claims that Israeli nationals had participated in Network School programmes in Forest City using second passports.
He said the Johor state government would approach the matter responsibly and in accordance with Malaysian law, emphasising the importance of protecting both national sovereignty and the state’s interests.
The issue has attracted considerable public attention as Forest City continues positioning itself as a destination for international businesses, technology ventures and digital economy initiatives.
While authorities have confirmed that the inspected travel documents were valid, the episode has highlighted the potential impact that public controversies and regulatory investigations can have on investor sentiment, particularly for projects seeking to attract foreign capital and global technology talent.
