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Did Malaysia Thwart an Israeli Infiltration Through Technology Investment?

July 24, 2026
in Sunna Files Observatory
Reading Time: 9 mins read
0

Public and political debate is intensifying in Malaysia over what has been described as an attempted Israeli infiltration through a technology investment project in the southern state of Johor.

The controversy began around three weeks ago, when civil society organisations alleged that an American company operating in education and advanced technology had provided cover for Israeli citizens to enter Malaysia using passports issued by other countries.

Pro-Palestinian organisations subsequently launched a social media campaign warning of what they called a “Zionist project operating under the cover of technology investment” in Johor, which borders Singapore.

The project is run by Network School, a company involved in advanced technology industries and managed by Indian-American businessman Balaji Srinivasan.

Dozens of Malaysian organisations accused Network School of acting on behalf of companies linked to the Israeli occupation, with the aim of facilitating “Zionist infiltration into the Malaysian arena”.

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Former youth and sports minister Syed Saddiq called on parliament to establish a committee to investigate the project and examine its alleged security risks.

An activist with the Boycott Israel campaign told Al Jazeera Net that public pressure and persistent contact with government officials had forced both the federal government and the Johor state government to open an investigation.

The authorities also pledged to punish any individual or organisation found to have violated Malaysian law, which prohibits Israeli citizens from entering the country.

Prime Minister Anwar Ibrahim separately vowed to deport anyone holding Israeli citizenship, including dual nationals.

US Congressional Pressure

Malaysian media reported on Wednesday that eight members of the United States Congress had demanded that Washington suspend military training assistance to Malaysia.

The lawmakers gave the Malaysian government 15 days to change what they described as an “antisemitic policy”, referring to Malaysia’s opposition to Israel. They also characterised Anwar Ibrahim’s statements about deporting Israeli citizens as racist.

In a memorandum addressed to US Secretary of State Marco Rubio, the eight lawmakers called for a review of security and economic relations with Malaysia.

They described Malaysia’s refusal to recognise Israel as “troubling” and accused the country of providing military training to fighters from the Palestinian resistance movement Hamas.

According to Malaysian media, signatories to the memorandum included Greg Landsman, Josh Gottheimer, Dan Goldman, Debbie Wasserman Schultz and Jared Moskowitz.

Investigation Findings

The Malaysian government announced that it had revoked Network School’s operating licences and cancelled the entry visa of its director, Balaji Srinivasan.

Customs Department Director-General Zakaria Shaaban said on Tuesday that authorities were searching for 19 foreign nationals whose current whereabouts were unknown, including whether they remained inside Malaysia or had already left.

According to Shaaban, the 19 were among 430 people registered as workers with Network School. Around 210 were believed to remain in Malaysia, while 201 had already departed.

He added that search and investigation operations involving more than 300 individuals had not uncovered legal violations related to the misuse of immigration laws.

Forest City management, where the Network School project is based, said in a statement that it was conducting an internal investigation to determine whether any local laws had been breached.

Security Concerns Surrounding the Project

Several Malaysian politicians who spoke to Al Jazeera Net expressed suspicion about the project.

Some described it as a threat to Malaysia’s national security and compared it to what they called controversial Zionist projects in Argentina and Albania.

They also alleged that the project represented an Israeli attempt to gain access to Malaysia through the semiconductor industry, which has expanded significantly in the country in recent years.

According to information published by dozens of Malaysian organisations, the project described as “Zionist” operates within the struggling Forest City property development.

Forest City is a vast development covering 1,370 hectares and costing more than US$100 billion. It has since become widely regarded as a ghost city, and the Malaysian government has been attempting to revive it.

The Deoccupation campaign provided Al Jazeera Net with information and a list of what it described as the digital security risks posed by Network School.

According to the campaign and other Malaysian organisations, the project was designed to establish what they called a “Zionist technological experiment” in a free-trade zone allegedly operating beyond Malaysian laws prohibiting dealings with Israel.

They also claimed that the project had been promoted by Nas Daily, which they accused of conducting Arabic and English-language campaigns in support of Israel and normalisation.

The organisations said the project was based in a free zone that provides passports to workers and allows them freedom of movement from Malaysia.

They further alleged that the project enabled Israeli citizens to enter Malaysia by circumventing the country’s visa restrictions.

Reddit discussions were also cited as showing Israeli nationals coordinating efforts to obtain Malaysian visas despite the existing ban.

The groups said Srinivasan was known for close ties to Israel and the Zionist lobby in the United States. They stated that he advises StarkWare, an Israeli cryptography company, and supports start-ups integrated into the Israeli technology sector.

According to the Deoccupation campaign, Srinivasan met Malaysian Digital Minister Gobind Singh Deo, who is of Indian origin, in an effort to secure entry visas that would bypass existing procedures and allow workers and investors to join the project.

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