Balaji Srinivasan’s Network School, a community of “digital nomads”, plans to build a new campus in Kazakhstan after the business license of its Forest City campus was revoked due to alleged facility use violations.
A memorandum of understanding was signed between Kazakhstan’s Minister of Digital Development, Innovation and Aerospace Industry Zhaslan Madiyev and Srinivasan to establish the first networked school campus in Kazakhstan, according to a statement. statement of the ministry.
The deal in Kazakhstan gives the network school a potential new base after its operations in Johor were ordered to cease operations from Wednesday. Kazakhstan has positioned itself as an emerging technology hub, notably with plans for Central Asia’s first “crypto-city” in Alatau.
“Ironically, this whole drama with Balaji has literally validated the network state thesis,” said Haseeb Qureshi, managing partner of Dragonfly Capital. “The whole idea of a networked state is to take a dense group of talent and capital and negotiate collectively with the states. The Malaysian drama led Balaji to negotiate better terms with another state to copy and paste the network there.”
“Our new campus will become a haven for global techno-optimism, with fast-track visas, simplified redomiciliation and active talent recruitment,” said Srinivasan. said Tuesday.
Network School risks losing digital status in Malaysia
The new memorandum of understanding with Kazakhstan comes as the Forest City campus faces regulatory action on several fronts.
Tuesday, Iskandar Puteri Municipal Council (MBIP) revoked the business license of NSO Malaysia Sdn Bhd, which operates the Network School, alleging that the company violated license conditions and premises use requirements.
This led to the creation of the Malaysia Digital Economy Corporation (MDEC) announcing it is taking immediate action to revoke NSO Malaysia’s Malaysia Digital status, which requires companies participating in the program to comply with all local and federal laws.
Malaysia Digital is a recognition given to qualified technology and digital companies, providing them with tax incentives, freedom of ownership and allowing the employment of local and foreign workers, among other incentives.
Meanwhile, Johor State Chief Minister Onn Hafiz Ghazi exhorted Malaysian federal authorities will continue to investigate whether the network school violated immigration laws.
Related: Balaji seeks deal with Malaysia, threatens to withdraw after Network School investigation
“This issue cannot be taken lightly, especially since Johor is a strategic entry point for the neighboring country of Singapore. Any weakness or abuse of the immigration system must be addressed quickly, firmly and without compromise,” Onn said.
Friday, Srinivasan denied reports that the Network School was in the process of closing its doors, claiming to have received two notices, one requiring “altering the text of a sign” and the other regarding a coworking site, created by joining two adjacent units, which had a valid license on one side, not the other.
“We have a time frame to address both issues, and we will address them shortly. But our members are otherwise unaffected,” he said.
Cointelegraph has contacted Srinivasan and Network School for comment.
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