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Network School ordered to cease operations at Forest City site over licensing breach; founder says operations continue - CNA - News Directory 3

Network School ordered to cease operations at Forest City site over licensing breach; founder says operations continue – CNA

July 18, 2026 Ahmed Hassan World
News Context
At a glance
  • Malaysian authorities ordered Network School to cease operations at its Forest City site in Johor after the organization breached local licensing rules, according to reports from CNA and...
  • The crackdown on the commune-style educational project follows allegations that the entity failed to secure the necessary permits to operate within the special economic zone.
  • Despite the government order to shut down, the founder of Network School stated that operations continue, according to CNA.
Original source: channelnewsasia.com

Malaysian authorities ordered Network School to cease operations at its Forest City site in Johor after the organization breached local licensing rules, according to reports from CNA and Free Malaysia Today. Prime Minister Anwar Ibrahim further stated that Malaysia will immediately deport any Israeli nationals involved with the school, as reported by The Star.

The crackdown on the commune-style educational project follows allegations that the entity failed to secure the necessary permits to operate within the special economic zone. Onn Hafiz, the Menteri Besar of Johor, confirmed that the premises breached local regulations, according to Free Malaysia Today.

Despite the government order to shut down, the founder of Network School stated that operations continue, according to CNA. This creates a direct conflict between the school’s administration and the Johor state government over the legal status of the site.

Israeli Nationals and Deportation Orders

The involvement of Israeli citizens has elevated the licensing dispute into a diplomatic and security matter. Prime Minister Anwar Ibrahim announced that any Israeli nationals associated with Network School would face immediate deportation, according to The Star.

Israeli Nationals and Deportation Orders

Malaysia does not maintain diplomatic relations with Israel. The Prime Minister’s directive aligns with long-standing national policy regarding the entry and residency of Israeli citizens, particularly those involved in organized activities without official state sanction.

Licensing Breaches at Forest City

Network School established its presence in Forest City, a massive development in Johor designed as a hub for international business and innovation. However, Johor officials say the school did not follow the legal requirements for establishing an educational or residential commune in the area.

According to Free Malaysia Today, Onn Hafiz identified specific breaches of local rules that necessitated the order to cease operations. The school’s model, which blends living and learning in a commune format, appears to have clashed with the zoning and licensing frameworks managed by the Johor state government.

Impact on Tech Talent Recruitment

The situation has raised concerns regarding Malaysia’s image as a destination for global technology talent. The South China Morning Post reports that the probe into Network School brings into question the level of openness the country maintains toward international tech entrepreneurs and digital nomads.

Home Ministry investigates Forest City Network School

Forest City was positioned as a gateway for high-tech investment and a flexible environment for innovators. The South China Morning Post notes that the aggressive move to shut down the school and deport participants may signal a tension between Malaysia’s desire for tech growth and its strict adherence to licensing and diplomatic protocols.

Community Division in Johor

The presence of Network School has created a social divide within the Forest City area. The Straits Times reports that the commune has become a polarizing element in Johor, pitting the vision of a decentralized, globalist educational hub against local regulatory authority and national security concerns.

While the founder maintains that the school’s activities are continuing, the legal pressure from the state government remains active. The conflict centers on whether the “school” qualifies as a legitimate educational institution or an unauthorized residential colony operating under the guise of tech innovation.

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Forest City, Israel, Johor, Malaysia

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