Network School ordered to cease operations at Forest City site over licensing breach; founder says operations continue

Malaysian authorities have issued a cessation order to a startup community in Forest City due to licensing breaches. The founder, Balaji Srinivasan, disputes the shutdown claims, stating the organization is in a remedial period to address the issues.
Why it matters
This highlights the regulatory challenges faced by international startup hubs operating in foreign jurisdictions.
Johor Chief Minister Onn Hafiz Ghazi said the Iskandar Puteri City Council has issued a cessation notice to one of the startup community's premises as well as an advertising licence notice for displaying non-compliant signboards.
A Network School sign is seen in Forest City, Johor, on Jul 16, 2026. (Photo: CNA/Zamzahuri Abas)
ISKANDAR PUTERI, Johor: In the latest twist in the saga between Malaysian authorities and the Network School in Forest City , the Johor government has issued a cessation order to the startup community after finding that one of its premises was operating without a valid business licence.
But Balaji Srinivasan - the American investor behind the organisation – on Saturday (Jul 18) disputed reports suggesting that the Network School is shutting down, saying it has received two notices from authorities and would have a “remedial period for both issues”.
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