KUALA LUMPUR — U.S. investor Balaji Srinivasan is questioning whether Malaysia remains a safe bet for global technology investment, following an immigration inspection at a “digital nomad” community he founded there that was triggered by unverified social media allegations.
The country’s Immigration Department confirmed Wednesday that its inspection of 266 foreign nationals at the Network School found that all of them possessed valid travel documents. The announcement came one day after authorities said they were looking into online claims that Israelis were present at the community in violation of Malaysian law.
Srinivasan, a former chief technology officer at Coinbase who established the Network School, took to social media late Thursday to raise a pointed question: “Should the global tech community continue investing in Malaysia?”
He noted that his experience would be relevant to “executives at Google, Amazon, Apple, and Microsoft, founders of tech unicorns like Coinbase and Solana, and investors at the world’s largest venture capital funds.”
Srinivasan stated that any additional investments he had planned for Malaysia are now on hold until he receives guarantees that a similar situation will not occur again. He also requested a meeting with the prime minister’s office. Reuters has reached out to that office for comment on his statements.
According to Srinivasan, an anonymous social media account made false accusations that the community was sheltering illegal immigrants. That post led to an official visit days later, during which he said authorities examined hundreds of passports — including those of dual-passport holders — and determined everything was in compliance.
Though he acknowledged that immigration officials conducted themselves in a courteous and professional manner, Srinivasan argued that “the process is the punishment.”
Malaysia, a Muslim-majority nation and firm supporter of the Palestinian cause, does not maintain diplomatic relations with Israel. However, the country has no specific legislation preventing Israelis from entering using passports from another country.
The timing of the controversy is notable. In 2024, Malaysia unveiled a roadmap aimed at transforming the country into a global hub for tech startups, featuring favorable visa programs for foreign investors and skilled workers, along with measures to simplify business formation and attract venture capital. That vision has gained further momentum through a surge in data center investment in Johor — the Malaysian state where the Network School operates — which has emerged as Southeast Asia’s fastest-growing data center hub.
