Malaysia Shuts Down “Network School”: Shockwave Through the Startup Ecosystem

The Malaysian government ordered the closure of Balaji Srinivasan’s “Network School” venture due to licensing issues.

Licensing Hurdles for an Innovative Hub

Located in a repurposed hotel, the community that blended tech incubation with personal development was forced to shut down after local permit gaps and facility hygiene concerns triggered official intervention.

Regional Ripple Effects and Alternative Playbooks

The shutdown highlights the fragility of the Southeast Asian startup landscape and may erode investor confidence in the region.

Reactions from Investors and Entrepreneurs

■Balaji Srinivasan announced he renounced his U.S. citizenship in 2023 and confirmed his status as a proud Singaporean.

■Participants complained about moldy rooms and a gender imbalance, questioning the community’s sustainability.

■Media outlets such as TechCrunch reported that a new campus is slated for Kazakhstan following the closure.

Forward Outlook: The Kazakhstan Campus

Srinivasan signed a fresh agreement with Kazakhstan to bypass licensing obstacles and secure a more conducive environment, potentially adding a new layer of economic diversification to the region.

Dr. Yaman Ege – Director of Semiconductor and Technology Supply Chain: "The closure of Network School underscores the pivotal role of regulators in regional startup ecosystems while illustrating entrepreneurs’ geographic agility. The pivot to Kazakhstan mirrors the risk‑spreading strategies of chip giants like Nvidia and TSMC amid geopolitical supply‑chain pressures. Investors must proactively assess similar licensing and infrastructure risks moving forward."