JOHOR local authorities have ordered the operation of Network School in Forest City to be closed effective July 22.
The Iskandar Puteri City Council (MBIP) issued an order to close and revoke the business license of the technology community after reviewing the inspection report and enforcement findings.
MBIP said the decision was made during a special full council meeting following inspections and enforcement checks carried out at the company’s premises on July 12, 14, 19 and 20.
Menteri Besar Datuk Onn Hafiz Ghazi later explained that the Johor government always welcomes high-quality investments that benefit the economy, create job opportunities and drive state development.
“However, no investor, company or organisation can be placed above the sovereignty of the country’s law,” he said in a media statement today.
The controversy over the Network School, which was launched in 2024, erupted after several social media users questioned the program in Forest City by claiming that it attracted foreign entrepreneurs, including Israelis using second-country passports.
Among the viral claims are interview questions for potential participants that touch on issues related to Israel, military technology and politics, in addition to claims that the initiative has the potential to make Forest City a meeting place for entrepreneurs with ties to Tel Aviv.
MBIP said enforcement action was taken after the company was found to have breached licensing conditions and premises usage requirements under its jurisdiction.
For a unit located at Teluk Bintang along Jalan Forest City 5 in Pulau Satu Forest City, MBIP said the company had been operating without a business licence.
It issued a Stop Business Notice under the Iskandar Puteri City Council Trade, Business and Industrial Licensing By-Laws 2018.
MBIP also revoked the business premises and advertising licences for another unit at Jalan Forest City 5 after finding that business activities carried out at the premises differed from those approved under its office-use licence.
The council issued a notice requiring the company to comply with its advertising licence after determining that the signboard displayed at the premises did not match the approved application.
Onn Hafiz said the state government and local authorities would not compromise on any breach of the law or matters that could affect national security, sovereignty and interests.
He also called on the Home Ministry, Immigration Department, Royal Malaysia Police and relevant security agencies to continue investigations and take firm action if there were any misuse of second passports, misrepresentation of identity, breaches of entry requirements or other offences under Malaysian law.
“This matter cannot be taken lightly, especially as Johor is a strategic gateway to the country bordering Singapore. Any weaknesses or misuse of the immigration system must be addressed immediately, firmly and without compromise,” he said. – July 21, 2026
