Balaji Srinivasan's Network School signed a memorandum of understanding with Kazakhstan's Minister Zhaslan Madiyev to establish a campus in Kazakhstan. The agreement follows the revocation of the Network School's business license at its Forest City campus in Malaysia, with operations ordered to cease effective Wednesday. The Iskandar Puteri City Council alleged the company breached licensing conditions and premises usage requirements. Kazakhstan has been positioning itself as an emerging technology hub, including plans for Central Asia's first 'crypto city' in Alatau.
Kazakhstan Signs MOU for Network School Campus
The memorandum of understanding was signed between Kazakhstan's Minister of Digital Development, Innovation and Aerospace Industry, Zhaslan Madiyev, and Srinivasan to establish the first Network School campus in Kazakhstan, according to a statement from the ministry. Srinivasan said Tuesday that "our new campus will become a haven for global techno-optimism, with expedited visas, streamlined redomiciliation, and active recruitment of talent."
The Kazakhstan agreement gives the Network School a potential new base after its Johor operation was ordered to cease operations effective Wednesday. Dragonfly Capital managing partner Haseeb Qureshi said, "Ironically, this whole drama with Balaji literally validated the network state thesis. The whole idea of a network state is taking a dense group of talent and capital, and collectively negotiating with states. The Malaysia drama set up Balaji to negotiate better terms with another state to copy and paste the network there."
Malaysia Revokes Business License and Digital Status
On Tuesday, the Iskandar Puteri City Council (MBIP) revoked the business license of NSO Malaysia Sdn Bhd, which operates the Network School, alleging the company breached licensing conditions and premises usage requirements. This led to the Malaysia Digital Economy Corporation (MDEC) announcing it is taking immediate steps to revoke the Malaysia Digital status of NSO Malaysia, which requires companies under the program to follow all local and federal laws.
Malaysia Digital is a recognition awarded to qualified technology and digital companies, providing them with tax incentives, freedom of ownership and allowing the employment of local and foreign workers, among other incentives.
On Friday, Srinivasan denied reports that the Network School was shutting down, claiming that it had received two notices, with one notice requiring it to "change the text of a sign" and the other regarding a coworking site, created by joining two adjacent units, that had a valid license on one side, not on the other. "We have a remedial period for both issues, and will remediate them shortly. But our members are otherwise unaffected," he said.
Johor Chief Minister Urges Federal Investigation
Onn Hafiz Ghazi, Chief Minister of Johor State, has urged Malaysia's federal authorities to continue investigating whether the Network School violated immigration laws. "This matter cannot be taken lightly, especially since Johor is a strategic entry point for the country bordering Singapore. Any weaknesses or abuse of the immigration system must be addressed promptly, firmly, and without compromise," said Onn.
FAQ
What did the Network School announce on Tuesday regarding Kazakhstan?
Balaji Srinivasan's Network School signed a memorandum of understanding with Kazakhstan's Minister of Digital Development, Innovation and Aerospace Industry, Zhaslan Madiyev, to establish the first Network School campus in Kazakhstan, according to a statement from the ministry. Srinivasan said the new campus will offer expedited visas, streamlined redomiciliation, and active recruitment of talent.
Why was the Network School's Malaysia business license revoked?
On Tuesday, the Iskandar Puteri City Council revoked the business license of NSO Malaysia Sdn Bhd, which operates the Network School, alleging the company breached licensing conditions and premises usage requirements. Operations were ordered to cease effective Wednesday. The Malaysia Digital Economy Corporation also announced it is taking immediate steps to revoke the Malaysia Digital status of NSO Malaysia.
