Malaysia in Uproar Over 'Israeli Village' in Ghost City
The Malaysian public is in uproar over the establishment of an ‘Israeli village’ in a residential complex in Johor. The state government has ordered an investigation into a startup community operating in the Forest City area called Network School. It was initially reported that a number of Israeli citizens joined the programme using passports from other countries. Israeli nationals are barred from entering Malaysia as the two countries do not have diplomatic relations.
Johor Menteri Besar Onn Hafiz Ghazi said the state government has received various reports and public concerns regarding the activities of a community that promotes a concept combining housing and a learning centre for startup founders, remote workers, and content creators. ‘We will not allow any party to use Johor as a base to spread ideologies or movements that contravene the laws, sovereignty, and interests of Johor or Malaysia,’ Onn Hafiz said in an official statement.
Onn Hafiz said he has requested the Home Ministry, Immigration Department, Police, Customs, and various other security agencies to investigate the identities and nationalities of the participants and organisers of Network School. The investigation also covers the alleged use of second passports by individuals with links to Israel to enter Malaysia. Additionally, the government wants to ascertain whether their purpose of arrival aligns with the activities conducted in Forest City. Beyond immigration aspects, the Higher Education Ministry, Digital Ministry, and several other regulators have also been asked to examine the legal status of Network School, including whether the programme has obtained the necessary permits under Malaysian regulations.
At the local level, the Iskandar Puteri City Council together with the Johor Land Office will audit compliance with business licences. The use of buildings, land status, and business activities conducted by the community will also be investigated. ‘If violations of the law, passport misuse, permit breaches, or elements threatening national interests and national security are found, we demand firm action without compromise,’ Onn Hafiz stressed.
Network School previously drew attention in October 2025 after Israeli content creator Nuseir Yassin, known as Nas Daily, uploaded a promotional video about the community from Johor. The video, which featured several Johor landmarks and a panorama of Singapore, was later deleted. Network School was founded in 2024 by American tech entrepreneur and former Coinbase Chief Technology Officer Balaji Srinivasan. On its official website, Network School describes itself as a community for ‘techno-optimists’ that combines housing, co-working spaces, a fitness centre, and learning activities. Membership fees start from US$1,500 per month, including accommodation, meals, and various other facilities. The concept is part of the ‘network state’ idea popularised by Srinivasan, which involves building a digital community that eventually develops into a physical settlement with its own social and economic system.
This case once again puts Forest City, a multi-billion-dollar smart city project in Johor near Singapore, under public scrutiny. The Malaysian government is now working to ensure all activities in the area remain in line with national laws and do not disrupt the country’s security and sovereignty. Forest City itself was previously labelled a ghost city in Malaysia in 2023 by many Western media outlets, including BBC International, due to minimal occupancy in the area.