'Digital utopia' endorsed by minister at centre of storm over Zionist links as Johor MB calls for probe

The Johor government has urged Putrajaya to investigate allegations that a co-living community for digital nomads and entrepreneurs founded by a pro-Israel businessman who reportedly lobbied a minister has been attracting Israeli nationals to set up base in Forest City, in violation of Malaysia's strict immigration and diplomatic policies regarding the Zionist state.

Johor Menteri Besar Onn Hafiz Ghazi urged federal agencies including the home ministry, immigration, police and customs to launch a probe into those residing at Network School, a so-called "startup society" and "learning retreat" founded by Balaji Srinivasan, a staunchly pro-Israel American entrepreneur of Indian heritage who has been pushing for "Tech Zionism", the idea of establishing private, self-governing tech communities fuelled by digital currency.

"I would like to stress that the Johor government will not allow anyone to make the state a base to bring in ideologies or movements that contradict the law, sovereignty and interests of Johor and Malaysia," said Onn, who was recently sworn in for a second term to lead the state following last week's elections.

The recent state election campaign, however, did not see any party raising the issue of Network School, which could be damaging to Prime Minister Anwar Ibrahim's administration, which has over the years taken pains to portray itself as pro-Palestine in the wake of allegations of being complicit in Israeli war crimes.

This was despite Network School having been established almost two years ago, evolving from a temporary set-up to a permanent residency for hundreds of people from around the world, who pay a monthly fee of just over RM6,000 for accommodation and other facilities.

In addition, Network School hosts talks featuring pro-Israel entrepreneurs such as Ethereum co-founder Vitalik Buterin and Brian Armstrong, the CEO of cryptocurrency firm Coinbase, which has made heavy investments in Israel.

Other speakers with political and business links to Israel include Ben Horowitz, Bryan Johnson and Anatoly Yakovenko, and more than a dozen others, according to its website.

Still, the line-up also includes individuals who have spoken out against Israel's genocidal war in Gaza, such as Jordanian American tech entrepreneur Amjad Masad and journalist Glenn Greenwald.

Last year, Masad revealed how his stance against Israel came at a price.

"When I first spoke out about the genocide, I was one of the few voices in tech, and it came at a cost.

"It was painful, but I never once regretted standing up for the children in Gaza," he had said.

MalaysiaNow's WhatsApp query to Network School has not received any response so far.

At the centre of the criticism is Srinivasan, who reportedly approached Malaysian politicians to support his project.

On May 13, Bloomberg cited sources as saying that Srinivasan had asked Digital Minister Gobind Singh Deo "to consider a tighter-knit relationship between the government and his Network School".

In what could raise further questions, Srinivasan also reportedly pitched a prototype of Malaysia’s visa application platform, with a view to approving fast-track visas for Network School residents, allowing them longer stays.

Just a month earlier, on April 17, Gobind visited Network School where he posed alongside Srinivasan.

“What I saw reaffirmed Malaysia’s position as a rising destination for global tech talent,” he wrote on X, only to spark criticism. The post was later taken down.

The latest controversy is not the first involving Forest City, which was planned as a futuristic "green city" on four man-made islands and was developed by China's Country Garden Holdings Company in a joint venture with companies owned by the Johor sultan.

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Also see:
Gallery: The ghost town of Forest City
Video: No one home at Forest City

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The project was fiercely opposed by former leader Dr Mahathir Mohamad, who announced shortly after returning to power in 2018 that foreigners would no longer be allowed to buy property there.

A combination of the Covid-19 pandemic and Beijing's crackdown on capital flight greatly affected the project as Forest City struggled to attract property buyers from China.

In 2023, Anwar announced the establishment of a Special Financial Zone (SFZ) in Forest City to boost Johor's economy.

But eight months later, Bloomberg reported that the prime minister and two prominent tycoons had discussed a plan to open a casino in Forest City.

"Anwar, senior government officials and the businessmen had lunch and meetings on the possibility of granting what would only be Malaysia’s second-ever casino licence," the report said, naming Berjaya's Vincent Tan and Genting's Lim Kok Thay.

Anwar denied the report, calling it a lie, but stopped short of saying whether he would seek a retraction. The article remains available on Bloomberg.