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Malaysia Threatens to Deport Israelis From Tech Hub as $117 Million Expansion Is Frozen

Jul 17, 2026·3 min read

Malaysia’s government has escalated anonymous online allegations into a national-level investigation and an explicit threat to deport Israelis from a prominent technology community, even after its own immigration sweep found that every foreign national inspected possessed valid documentation.

Prime Minister Anwar Ibrahim said any Israeli citizens discovered at the Network School in Johor’s Forest City would be expelled immediately. The investigation began after social media accounts alleged that Israelis were living at the startup enclave after entering Malaysia with passports issued by other countries.

Evening aerial view of the KLCC Park and the Petronas Twin Towers in Kuala Lumpur, Malaysia. The urban park in Kuala Lumpur City Center is a popular tourist attraction of Asia. Kuala Lumpur skyline.

“If there are Israeli nationals involved, they will be deported immediately,” Anwar said, citing Malaysia’s refusal to recognize Israel. Authorities have not publicly identified a single Israeli citizen at the site.

Immigration officials inspected 266 foreign nationals from 40 countries and found that all held valid travel documents. Further inquiries are continuing into permit conditions, identities, the school’s licensing and whether participants’ activities match the purposes stated when they entered Malaysia.

Malaysia bars travelers using Israeli passports, but Reuters reported that the country has no specific law preventing an Israeli dual national from entering on a second country’s passport. That distinction has placed the government’s sweeping deportation threat on uncertain legal ground.

GAZA CITY, -: Members of Hamas’s armed wing Ezzedine al-Qassam Brigades, give a press conference in Gaza City 03 November 2006. Before dawn, four members of Hamas’s armed Ezzedine al-Qassam Brigades, blacklisted as a terrorist organisation by Israel and the West, were killed in a pre-dawn air strike in eastern Gaza City. Twenty-five Palestinians have been killed since the Israeli offensive began two days ago, at least 13 have been militants. AFP PHOTO/MAHMUD HAMS (Photo credit should read MAHMUD HAMS/AFP via Getty Images)

The Network School was founded by American investor and former Coinbase chief technology officer Balaji Srinivasan. It describes itself as a physical community for technology entrepreneurs, engineers and digital nomads seeking to turn online communities into startup-focused societies.

The project operates in Forest City, a massive reclaimed-land development across the Johor Strait from Singapore. Once promoted as a futuristic urban center, Forest City struggled to attract residents before becoming part of Malaysia’s effort to draw international investors and technology talent.

Johor officials demanded the federal investigation examine the nationalities and immigration status of participants, alleged use of second passports and whether the school required additional authorization from Malaysia’s education and digital regulators. The probe was launched despite the accusations originating from an anonymous social media account and immigration officers finding no document violations.

View original on Jewish Breaking News