The Malaysia Digital Economy Corporation (MDEC) has begun the process of revoking the Malaysia Digital status of NSO Malaysia Sdn Bhd, the operator of Network School at Forest City, Iskandar Puteri, Johor. The school premises were reportedly emptied overnight before authorities arrived, with signboards removed and the location left vacant.
The move follows the Iskandar Puteri City Council’s (MBIP) decision to revoke the company’s business licence after finding violations involving licensing requirements and the use of its premises.
MDEC said companies holding Malaysia Digital status must obtain relevant approvals and comply with all applicable laws and regulations.
“The revocation of NSO’s business licence constitutes a breach of this requirement,” MDEC said.
Network School ordered to shut down
MBIP previously issued a notice requiring NSO to cease operations effective July 22, 2026, after inspections found non-compliance with local authority regulations.
The council said the premises had been approved for office use, but the actual activities conducted there did not match the approved purpose.
School premises found empty after overnight move-out
Following MBIP’s enforcement action, the Network School premises at Forest City were found largely vacant, with its signboards removed and only a notice of temporary closure left at the entrance.
According to reports, the school’s staff had already moved out some equipment and belongings overnight before authorities carried out their follow-up checks, raising questions over the timing of the sudden move.
A security guard at the location said the school signboard had been removed earlier, while staff were seen moving items out of the premises the previous night.
MBIP had earlier issued a notice ordering NSO Malaysia Sdn Bhd to cease operations after inspections found breaches involving licensing requirements and the use of the premises.
Immigration checks 430 people linked to activities
Meanwhile, the Immigration Department is investigating individuals linked to Network School’s activities.
Immigration director-general Datuk Zakaria Shaaban said investigations found 430 people connected to the school, including:
- 210 people still in Malaysia
- 201 people who have left the country
- 19 people whose whereabouts remain unknown
Authorities are investigating whether the 19 individuals entered or stayed in Malaysia through legal channels.
What led to the Network School shutdown?
Israel links allegations and immigration concerns
Network School came under scrutiny after allegations circulated on social media claiming that Israeli participants were involved in its activities and had entered Malaysia using passports from other countries.
Malaysia does not have diplomatic relations with Israel and does not allow entry for Israeli passport holders, leading authorities to treat the matter as a potential immigration and national security concern.
The Immigration Department later launched checks involving individuals linked to the school’s activities.
Business licence violations
Authorities found that NSO Malaysia was operating from two premises at Forest City, but only one had a valid business licence.
The second premises reportedly did not have the required approvals from the Iskandar Puteri City Council (MBIP), leading to enforcement action.
Premises used beyond approved purpose
MBIP also found that units approved for office use were being used as classrooms and educational facilities.
The use of the premises reportedly did not match the approved purpose, resulting in violations of local authority regulations and contributing to the decision to revoke the company’s business licence.
Authorities stress compliance with Malaysian laws
MDEC said Malaysia remains open to quality digital investments but stressed that companies must comply with local laws and regulations.
The controversy surrounding Network School gained attention after allegations circulated online claiming the institution was linked to an Israeli agenda and cryptocurrency-related investment activities. Authorities have not confirmed these allegations, while investigations are ongoing.
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