- Malaysia has launched an investigation and deportation operation targeting Israeli nationals with dual citizenship in Johor.
- Authorities inspected 266 foreigners at Forest City’s Network School tech project on July fifteenth.
- Founder Balaji Srinivasan paused five hundred million ringgit in investments pending legal assurances from the government.
Malaysia launched an operation to identify and deport Israeli nationals after reports that Israelis with dual citizenship took part in a technology project in Johor. Prime Minister Anwar Ibrahim said anyone found would be removed immediately.
The investigation centers on Network School, a co-living community for startup founders and digital nomads at Forest City, Johor. Authorities are examining whether people linked to the project entered using secondary passports.
Anwar addressed the allegations at a press conference in Kuala Lumpur on July 15, 2026. He said the government would enforce its refusal to recognize Israel.
Free toolSubstantial Presence Test Calculator“We are investigating. we will not allow it. If there are any, action must be taken. If there are Israeli nationals, since we do not recognize Israel, they will be deported immediately.”
The Immigration Department inspected 266 foreigners from 40 countries at the site on July 15, Director-General Datuk Zakaria Shaaban said. Preliminary checks found valid travel documents for everyone inspected.
The first inspection has not confirmed an Israeli presence. Zakaria said authorities were continuing to examine the identities and activities of people connected to the project.
The first inspection found valid documents, not confirmed Israeli nationals
Zakaria said the inspection produced no evidence verifying the allegations about Israeli nationals at Network School. The department is continuing broader inquiries.
“So far, we have not found any evidence to verify the allegations regarding the presence of Israelis. however, broader inquiries into the identities and activities of those involved remain ongoing.”
The distinction leaves the investigation open. A valid document used during an inspection did not settle questions about a person’s other nationality or activities.
The Home Ministry began the formal review on July 14, 2026. In a statement, it cited national security, compliance with immigration laws and possible misuse of immigration facilities.
The ministry said the immigration department, police and other agencies were conducting a comprehensive review and investigation. The operation is checking whether foreign citizens entered with passports from countries other than Israel.
The project was founded by a former Coinbase executive
Network School operates as a community for startup founders and digital nomads. American entrepreneur Balaji Srinivasan founded it in 2024. He is a former chief technology officer of Coinbase.
The project’s location in Forest City has placed its international community at the center of the government’s inquiry. Officials are reviewing people associated with the site rather than relying only on the passport presented at entry.
The government generally bars Israeli passport holders from entering and has no diplomatic ties with Israel. Officials have indicated that the restriction also applies to Israeli citizens who possess another nationality.
That policy is tied to the country’s non-recognition framework. Authorities have described the presence of Israeli nationals as an issue involving national security and foreign policy.
Planned investment remains on hold pending legal assurances
Srinivasan announced on July 16, 2026, that he had placed RM500 million, approximately $122 million USD, in planned investments on hold. He said the money would remain paused pending legal assurances from the Prime Minister’s Office.
The decision adds a business consequence to an inquiry officials have framed around immigration enforcement and foreign policy. The government’s position is also linked to its staunch pro-Palestinian stance.
The investigation has drawn attention to the rules affecting international technology workers and digital nomads. The DE Rantau nomad visa program is part of that wider environment, although the operation itself is focused on identity and immigration compliance at the project.
The Home Ministry’s review involves multiple agencies. That arrangement allows officials to examine immigration records alongside police inquiries and other information about the people under review.
U.S. guidance warns that border officials may examine Israeli background
A U.S. Department of State travel advisory, updated in June 2026, advises U.S.-Israeli dual nationals to use their U.S. passports when leaving the last country on their itinerary before arriving in Malaysia.
The advisory also says dual nationals have reported problems at border control when officials identified their Israeli background. That guidance predates the current inspection but addresses the same issue: the passport used for travel may not be the only factor examined by authorities.
The operation therefore reaches beyond checking whether a presented travel document is valid. Investigators are also reviewing identity records and the activities of people connected to Network School.
As of July 17, 2026, authorities had not verified the allegations about Israeli nationals at the site. The prime minister’s stated policy remains immediate deportation if Israeli nationals are found, while the immigration department continues its inquiries.
