Network School Eyes Kazakhstan After Malaysia License Revocation

Network School signed a memorandum of understanding with Kazakhstan’s Minister of Digital Development, Innovation and Aerospace Industry, Zhaslan Madiyev, to establish its first campus in Kazakhstan. The agreement follows regulatory action in Malaysia after the operator’s Forest City site in Johor had its business license revoked.

On Tuesday the Iskandar Puteri City Council revoked the business license of NSO Malaysia Sdn Bhd, the local operator, citing breaches of licensing conditions and premises usage requirements. Local authorities ordered the Johor operation to cease effective Wednesday.

The Malaysia Digital Economy Corporation announced it is taking steps to strip NSO Malaysia of its Malaysia Digital status, a recognition that provides tax incentives, freedom of ownership and permission to employ local and foreign workers. The status is conditional on compliance with local and federal laws.

Johor Chief Minister Onn Hafiz Ghazi urged federal authorities to investigate possible immigration law violations, adding the matter “cannot be taken lightly” given Johor’s border with Singapore.

Balaji Srinivasan disputed reports that Network School was shutting down. He noted the operation received two notices: one requiring a change to a sign and another about a coworking area created by joining two adjacent units where only one side had a valid license. He added the company has a remedial period and that members are otherwise unaffected.

Kazakhstan has been seeking technology projects, including a planned Alatau “crypto city.” Srinivasan described the proposed campus as “a haven for global techno-optimism, with expedited visas, streamlined redomiciliation, and active recruitment of talent,” adding the school intends to offer migration and operational support to its community.

Haseeb Qureshi, managing partner at Dragonfly Capital, called the Malaysia controversy a validation of the “network state” concept and suggested it created an opportunity for Network School to negotiate with another state and replicate its community.

Network School’s Forest City campus had become a hub for digital nomads and founders and had drawn scrutiny over premises use and the legal status of its members. With the Kazakhstan memorandum in place, the school has signaled plans to expand while it addresses the regulatory notices issued in Johor.