Malaysia’s branch of the Boycott, Divestment and Sanctions (BDS) movement has welcomed the revocation of Network School’s business licence, telling The New Arab the decision was necessary to prevent the “normalisation” of Israel in the country.
Malaysian authorities ordered the US-founded digital nomad community to cease operations from 22 July after weeks of controversy over allegations it was harbouring Israeli nationals.
The tech community, founded by US entrepreneur Balaji Srinivasan, came under investigation earlier this month after social media users raised concerns about the alleged presence of participants from Israel – a country with no formal diplomatic ties to Malaysia.
Johor Chief Minister Onn Hafiz Ghazi confirmed on X on Tuesday that the school’s business licence had been revoked.
In a statement to The New Arab, BDS Malaysia welcomed the move, hailing the “swift and decisive action” taken by local authorities. The group also praised the Malaysian public, “whose vigilance, persistence and principled advocacy brought this issue to national attention”.
“Normalisation does not occur only through diplomatic relations. It can also take place through commercial, educational, cultural and other forms of engagement. That is why operations such as the Network School warrant careful scrutiny and, where necessary, appropriate action,” BDS Malaysia said.
“Raising concerns about the Network School is an important part of safeguarding Malaysia’s principled solidarity with Palestine and supporting the Palestinian people’s struggle for freedom, justice and self-determination,” it added.
‘Silicone Valley Outside Silicone Valley’
The Network School, established in Johor’s Forest City in 2024, came under increased scrutiny in recent weeks after a promotional video describing the project as being “on a man-made island near Singapore” sparked criticism from Malaysian social media users.
“For $1,500 a month, we get an ocean view room, a 24/7 fitness gym with classes, meditation spaces, and access to cool workshops and classes,” members of the community say in the video.
As the video gained traction, activist group Malaysia Protest for Palestine (MP4P) raised concerns about the potential presence of Israeli citizens at the site, highlighting a 2025 promotional video filmed at the school by Israeli content creator Nuseir Yassin, better known as Nas Daily. Yassin has previously documented trips to Malaysia using a St Kitts and Nevis passport.
The promotional material also angered many Malaysians for failing to mention the country by name.
“For Malaysians, this was never about one company. It was about being erased and threatened,” Danial Hadi, founder of Malaysian tech community KrackedDevs, told The New Arab.
The public outcry prompted an investigation by Malaysia’s Immigration Department. The immigration director-general said on Tuesday that while authorities had found “no evidence of any wrongdoing”, 19 people linked to the school were unaccounted for and may have “left the country illegally”.
Last week, Prime Minister Anwar Ibrahim also weighed in, saying any Israeli nationals found to be in the country illegally would be deported.
Amid the investigation, Srinivasan posted on X requesting a meeting with Anwar in a lengthy post titled “Should the global tech community continue investing in Malaysia?”
The tech entrepreneur also criticised MP4P, questioning the group’s motives.
“We aren’t talking about a credible accuser, but just someone screaming inconsistently at the top of their lungs on social media for traffic, an all-too-common phenomenon these days,” he wrote.
Responding to the licence revocation, MP4P told The New Arab: “We trust that the government will do the right thing.”
‘Tech Zionism’
Further criticism centred on ideas expressed in Srinivasan’s 2022 book ‘The Network State’, which advocates decentralised online communities and explores the possibility of creating new sovereign entities outside traditional nation states.
Social media users also resurfaced comments by the former Coinbase chief technology officer in which he promoted what he described as “Tech Zionism”.
“What I’m really calling for is something like Tech Zionism. And there are different versions of that, which are ‘reform in place’ and ’emigrate’. And The Network State – the book – is about the bare land version of it, which is already being tried,” Srinivasan said on the Moment of Zen podcast in 2023.
Other videos shared online have also fuelled criticism. In a 2025 video posted by YouTube channel Yes Theory, a member of the community appeared to suggest the island could eventually become an independent state.
“There’s like a new society growing on this island. It’s kind of in between Singapore and Malaysia,” the man says. “So there’s a chance of this island gaining independence, potentially becoming its own state.”
The New Arab has contacted Network School for comment.
