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Malaysia is reportedly shutting down Balaji Srinivasan’s Network School

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Why This Matters

The Malaysian government's shutdown of Balaji Srinivasan’s Network School highlights regulatory challenges faced by innovative, startup-centric communities aiming to build new societal models. This move underscores the complexities of establishing alternative tech-driven societies across different jurisdictions and the importance of compliance with local laws. It also signals potential hurdles for entrepreneurs seeking to pioneer new social structures outside traditional frameworks.

Key Takeaways

In Brief

The Malaysian government has ordered the shutdown of a startup-centric community called the Network School, according to The Wall Street Journal.

Billing itself as “a frontier community for techno-optimists,” the Network School reportedly grew out of entrepreneur and investor Balaji Srinivasan’s conviction that the United States is in irreversible decline; Srinivasan has said his goal is “to start a new country.”

So the Network School is supposed to represent the first step in a seven-stage plan (outlined in Srinivasan’s book “The Network State”) for building a new society. Based in an abandoned Malaysian hotel, the WSJ described the program as “part tech incubator, part self-improvement retreat.” Attendees, however, complained about moldy rooms, as well as a dearth of women and nightlife.

After receiving questions from the WSJ, Srinivasan – who apparently renounced his American citizenship in 2023 — published a lengthy post on X declaring himself “a proud Singaporean” and complaining that the WSJ was working on a “hit piece” that would make him look like “an odd duck […] as opposed to an early adopter.”

And although the current Malaysian campus will reportedly need to shut down due to licensing issues, Srinivasan recently announced a new agreement for a campus in Kazakhstan.