One of the two premises operated by Network School in Forest City has been found to be in breach of local authority regulations, according to Johor Menteri Besar Datuk Onn Hafiz Ghazi.
Onn Hafiz said inspections carried out by the Iskandar Puteri City Council (MBIP) found that the private residential community was operating from two locations, with one premises holding a valid business licence while the other was operating without the required MBIP approval.
He said the unlicensed premises had been issued a notice to stop business operations, while another notice was issued over a non-compliant advertising signboard.
The inspection also found that a premises registered as an office was being used for classroom activities and business promotions without the necessary approval, he said.
Onn Hafiz stressed that the Johor government would continue monitoring the matter, including compliance with licensing requirements, building usage regulations, land conditions and other relevant rules under MBIP’s jurisdiction.
He added that further enforcement action would be taken if any violations involving laws, licence conditions or regulations were detected.
The development follows the state government’s decision to conduct a comprehensive review of Network School’s operations after concerns were raised by the public over the programme.
Previously, Onn Hafiz said Johor would not allow any organisation to use the state as a platform for activities that go against Malaysian laws, sovereignty or national interests.
Network School, founded by former Coinbase chief technology officer and investor Balaji Srinivasan, came under scrutiny after claims emerged that Israeli nationals were among its participants.
However, the Immigration Department confirmed that all 266 foreign participants from 40 countries had valid immigration documents.
Srinivasan later said Network School, which had invested more than RM100 million in its Forest City campus and planned a RM500 million expansion, had temporarily paused its investment plans in Malaysia until further assurances were received.
He also expressed willingness to discuss a memorandum of understanding with the federal government, adding that the company may consider shifting investments to other countries if Malaysia does not support its plans.
