Balaji Seeks MOU With Malaysia After Forest City Probe

Balaji Srinivasan requested a formal memorandum of understanding with Malaysian authorities after the Home Affairs Ministry opened an investigation into his Network School community in Forest City, Johor.

The ministry announced the probe on Tuesday after a social media post by activist group Malaysian Protest 4 Palestine alleged the community had become a gathering place for Israeli entrepreneurs. Authorities reported initial checks showed all 266 foreigners on site held valid travel documents; their nationalities have not been released.

Network School launched in August 2024 as a physical community for founders, technologists and creators about an hour from Singapore. Srinivasan, who previously served as chief technology officer at Coinbase, suggested an MOU or a change to a special economic zone provision would provide legal certainty for the project.

In a video message to Prime Minister Anwar Ibrahim, he asked for ‘a document which says not just abstractly that tech is welcome… but rather that we’re personally welcome.’

He said planned further investment in Malaysia, including a $122 million expansion, is on hold until he receives what he called ‘sufficient assurance’ that similar issues will not recur. He added the community could shift its capital elsewhere without legal guarantees.

Malaysia bars Israeli passport holders from entering without written permission from the Home Affairs Ministry because it does not recognize Israel or maintain diplomatic relations. That immigration rule made the allegation particularly sensitive.

Officials have not provided further details on the progress or results of the investigation. Srinivasan did not outline specific legal terms he would accept.

Network School is marketed as a place where residents live and work together on digital projects. The episode involves immigration checks at the site and a public request for a written legal guarantee from the host government.