This is for people outside Malaysia to understand the Network School kerfuffle that Balaji walked himself into like a juvey, though it may also be helpful to some clueless locals.
Network School : is basically a coworking space, cum tech incubator, run by a cryptobro who wrote a book on one of those run-of-the-mill "virtualised software thingy" projects, calling it a "network state" . Instead of a cryptocurrency governed by an decentalised NGO bank, the "thingy" is ostensibly a nationstate. What's a virtualised nationstate? Well presumably it merely does all the things any common nationstate does, minus having geospatial loci - that is, until it claims a rock somewhere, or buys one from anyone else.
The klutz move here is that Balaji ( regardless of any political connections ) explicitly used the copy ( word choice ) "tech zion", to describe this. He subsequently set up Network School in Malaysia, a nation that doesn't acknowledge the legal existence of Israel because ... for the most part, though of course not comprehensively, Malaysia's citizens hate the actions of the nationstate of Israel, and Malaysian politicians are more than happy to capitalise on this issue to rally support for themselves from time to time.
A klutz move. A complete, klutz move.
Following a mid-term election cycle, where every possible issue that could be used to attack the federal government party was hauled up from the marshes, this then became a hot issue. Network School is built on a ( edit : figurative ) swamp - an artificial island and ecological disaster that has its own fascinating history in the economic development of the state of Johor. Incidentally the Johor Sultan is Malaysia's current Agung ( rotational king ), and state investments are tied up in the buildings where Network School is located.
Malaysians are understandably ( given what I've told you about them so far, even if you don't empathise ), pissed. They're even taking offense at the fact that Network School's marketing copy referred to it as located on an artificial island near Singapore instead of explicitly in Malaysia. Balaji seemed to be digging his own PR grave a little deeper by speaking as a businessman in curt public statements, instead of as a face-saving collectivist Asian.
Where is all this going? Absolutely zero** Malaysian political figures want to touch this with a ten-foot-pole, given the stakeholders involved. The Johor state government, and prince, have both pointed to the Federal government as the decider of foreign policy regarding any possible "Zionist infiltrators" which might be in Network School. The Prime Minister has haphazardly announced that while previously, Israeli passports have not been recognised for entry to Malaysia, Malaysia now will actively seek to identify holders of Israeli passports regardless of their other passports, and deport them - with further warning that active IDF members will be imprisoned.
Klutz nuts, all around.
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Below are some extra-credit points that didn't make it into the article.
- ** In case it is not clear : The buildings on the island are known as Forest City, and the history of this development is its own tragicomedy. Businesses profiting in Forest City are a tiny minority. The Malaysian masses that get hysterical about zionwords are more numerous by far, at least in representation. The politicians don't care - they don't want to get too close NOT BECAUSE THEY HATE BALAJI but because THEY DON'T KNOW HOW TO MANAGE PUBLIC HYSTERIA. Malaysians culturally have HUGE THERAPY CONCERNS from past trauma and 70 years of political ragebait on : sovereignty, ethnic contamination, colonial influence, and their ilk.
- Balaji has paused investments in Malaysia, claiming 100 MM MYR down, and 500 MM MYR planned. No receipts. And he's demanding fair business guarantees. He hasn't really broken any big laws, though the city council has thrown the book at him for doing unrelated activities in a "management office" which is what all coworking spaces in Malaysia tend to register as. "Diplomatic immunity" is not what is being demanded - rather, there is a demand that the government will endorse the business as legit, in order to reduce future "swatting" inconveniences which may occur randomly whenever Malaysian politics deems it politically gainful to cause a scene and soil the Malaysian government. [ It's like if I want to open a hotel in your taman, I sure as hell need a letter from the chairman of the HOA saying "this business ok one, please don't call the police in every time you want to make the HOA look bad". Of course, there's limited control the HOA (PMX) can exert, so if the residents keep attacking the HOA by swatting the hotel ... of course la the hotel operator is going to sell and exit the taman. ]
- The first public figure to address the trending furor about Network School was the Muar ( in Johor ) member of Parliament, who holds the record for having been the youngest full cabinet minister when he was 25. He's also the founder of MUDA a fledgling youth party which lost its state assembly seat in the recent Johor state elections. Extremely popular with the aunties. You have to read all about him. Another string is that this chap rose to power as a personal assistant to Mahathir, before leaving to found his own party.
- There is a cute history of Mahathir attacking Johor by limiting Forest City's profitability. It is of course not clear if that party is involved in the current campaign to defame Network School. Lol