Tech Blackmail? Network School founder threatens to withdraw millions unless PM Anwar grants private audience

SHAH ALAM – If Malaysia wants to remain a "top 20 tech hub" and see the revitalisation of Forest City, the government must grant an audience with the Prime Minister's office to sign a memorandum of understanding with the Network School, says its founder Balaji Srinivasan.

In a post on X, Srinivasan said continued investment from the global technology community would depend on whether Malaysia could maintain an environment where international investors feel assured about building and expanding their businesses.

He said Malaysia’s ambition under the KL20 initiative to become one of the world’s top 20 technology hubs, alongside policies such as digital nomad and investor visas, had created the impression that the country was ready to attract global talent and capital.

The former chief technology officer of Coinbase and former general partner at venture capital firm Andreessen Horowitz (a16z) said these factors influenced his decision to establish Network School in Forest City, Johor, in October 2024.

He said Forest City was chosen due to its available infrastructure, its proximity to Singapore’s financial ecosystem and its location within the Johor-Singapore Special Economic Zone.

“Within 18 months, without a single penny of government money, we built Network School into a global attraction that brought thousands of engineers, investors and builders from more than 70 countries,” he said in a statement.

Srinivasan said the community had invested more than RM100 million into its campus to create a startup-friendly environment, while contributing to the local economy through employment opportunities, support for Malaysian startups and spending at local businesses.

He added that Network School had also helped revitalise Forest City by attracting international visitors and contributing to increased interest in the development.

However, he said the group’s planned expansion in Malaysia had been put on hold following allegations made by an anonymous social media account accusing Network School of harbouring illegal immigrants.

He said Malaysian authorities later inspected the campus on July 14 and confirmed that travel documents belonging to members of the community were in order.

“During the process, we cooperated fully. We have nothing to hide,” he said.

Srinivasan said the incident had affected investor confidence, with future investments from Network School and its international partners being reconsidered until assurances were given that similar situations would not happen again.

He urged the government to engage directly with Network School to discuss a memorandum of understanding (MoU), which he said could help restore confidence among global investors.

“If Malaysia still wants continued global tech investment, if it wants to be a top 20 tech hub, if it wants us to revitalise Forest City, then we request an audience with the Prime Minister’s office to discuss the terms of an MoU between Network School and the Malaysian government,” he said.

Srinivasan stressed that Network School was not seeking financial support from the government, but wanted greater engagement and assurance on Malaysia’s position as an investment destination.

“We aren’t asking for any money – just a meeting, to help restore confidence in Malaysia as an investable jurisdiction,” he said.

He said Malaysia’s ability to attract global technology companies, investors and entrepreneurs would ultimately depend on whether the country could provide a stable and welcoming environment for innovation.

“If you don’t want our investment, or those of our colleagues at billion-dollar funds and trillion-dollar companies, we will of course respect your wishes and reallocate our capital to other countries instead,” he said.

The Home Ministry had on July 14 launched an investigation into the operations of the Network School following allegations that Israeli nationals had participated in the programme using second-country passports.

Following the investigation, authorities confirmed that all travel documents inspected were in order.