Malaysia’s Immigration Department has confirmed that 266 foreign nationals from 40 countries residing at the Network School in Forest City, Johor, possess valid travel documents, following an inspection on Tuesday. However, Prime Minister Anwar Ibrahim warned on Wednesday that any Israeli citizens found in the country would be “deported immediately,” as Malaysia does not recognise Israel. The operation, conducted jointly with the Iskandar Puteri City Council, the communications regulator, and the police, is part of a broader probe launched after social media allegations that Israeli nationals had entered the private residential community using second-country passports.

The Network School, founded in 2024 by former Coinbase chief technology officer Balaji Srinivasan, describes itself as a “frontier community of techno-optimists” aiming to build “Silicon Valley outside Silicon Valley.” It charges residents over RM6,000 (US$1,500) monthly for co-living and co-working facilities. The controversy erupted after online posts claimed that interview questions for prospective participants touched on Israel, military technology, and politics, and that the initiative could turn Forest City—a US$100-billion development on reclaimed land near Singapore—into a meeting point for entrepreneurs with links to Tel Aviv.

Johor Menteri Besar Onn Hafiz Ghazi had urged federal authorities to investigate, prompting the Home Ministry to launch a comprehensive probe. Immigration Director-General Zakaria Shaaban stated that while initial checks found all inspected individuals had valid immigration documents, “further reviews and investigations are ongoing to ensure full compliance with entry requirements.” He added that the department would investigate any new information regarding misuse of identity, travel documents, or immigration facilities. The developer, Country Garden Pacificview, said it takes the issue seriously and is committed to submitting all required documents to facilitate the investigation.

Malaysia, a Muslim-majority nation and staunch supporter of the Palestinian cause, bars entry to Israeli passport holders and has no diplomatic ties with Israel. However, it does not specifically prohibit Israelis from travelling on second-country passports. The immigration department stressed that all foreign nationals are subject to immigration law, and checks at entry points are based on travel documents presented and available enforcement records. The investigation remains active, with authorities working closely with the Home Ministry and other agencies to examine all aspects thoroughly. No formal charges have been filed, and the Higher Education Ministry is expected to clarify the legal status of the Network School, which does not appear to be a registered educational institution.