Super super short summary, trying to be as objective as possible:
- Malaysia does not allow Israelis to enter the country, by law. Last year, an Israeli content creator with two passports entered on his other passport and recorded a video promoting Network School.
- A social media account then alleged that Network School was enabling Israeli citizens to gain access to the country illegally.
- This resulted in a police raid, where Johor police checked the passports of all Network School residents/attendees. In that investigation, they did not find anyone who's broken Malaysian immigration laws.
- Balaji recorded a 25min+ video summarizing the incident and requesting an "audience with the Prime Minister" to sign a formal MOU between Malaysia and Network School to ensure this never occurs again.
- Many Malaysians on social media were angered by the tone of the video and, having not heard about Network School before, were alarmed by clips and portions of his Network State book which they inferred meant NS would take over part of Malaysian land and eventually try to separate from the country/violate the sovereignty of the country. Balaji did say at the end of his video reply that he respects the laws of Malaysia, but only about 22ish minutes into the video itself; he also offered to take his investment elsewhere if he didn't get an audience with the PM, which many Malaysians found offensive.
- Given it's an election year and public opinion on this is sharply negative (in part due to the video's tone)... IMO it never seemed likely he'd get a kind conversation with the Malaysian gov after recording that video. And he did not.
- Johor police/gov eventually demanded NS shut down (pulled its business license) due to filing for a license for office space, when they were also offering an educational program and calling themselves a "school". This requires them to cease operations immediately.
- Balaji announces a partnership with the Kazakhstan government to open Network School there instead.
I won't wade into this matter too much (also I'm not Malaysian) but my two cents:
1) I think if you write a book claiming that you eventually want to form a new breakaway country and can't articulate to the country that's hosting you why you won't subvert their sovereignty, citizens will assume you will, and you will earn many enemies (unless *from the start* you clearly announce that's what you want to do and get explicit permission). NS did not do this.
2) Malaysia is a democratic country, and the opinion of its citizens matters highly. If you're going to set up shop in a country where your operation (of any kind) depends on that country's resources, it should be quite obvious that managing political relationships and public opinion (and perhaps not calling your project "near Singapore" on every ad) is one of your most important responsibilities.
3) Personally I always saw the brand of "new country" as not a literal thing; it was a community, rather than a country. More accurately, it was a hotel + adjacent apartment block on the Forest City campus which was still in operation, leased to house NS occupants. But by using that brand and calling himself a "tech Zionist" on podcasts/in writing, it seems fair to me that Malaysians would take him literally, and there wasn't really a strong response either to people's concerns (just "take it or leave it").
4) Bluntly, if you're going to move to a place and invite others to move to a place, I think you ought to first respect the culture, rules, and people of that place (or simply not opt to move there).
Having been to NS and seen founders incubate really interesting projects there (again I always saw it as a live-in startup incubator), I hope for their residents' sake that they go off and thrive in Kazakhstan and build something awesome there, if that's what they want to do (not to interfere with the sovereignty of any country). Given that JB could in theory effectively serve as a hub for deep tech and global founders across Malaysia + Singapore, I wish this would have worked out positively for both sides, but it certainly didn't.
We called it. You played it. Spain made it a reality.
Five predictions in a row, and @SEFutbol lifted the trophy 11M+ times across #FC26 and #FCMobile.
Congratulations on your second star โญ๏ธโญ๏ธ
#TheWorldsGame