MDEC moves to revoke Forest City school operator status

Photo courtesy of Malay Mail

The Malaysia Digital Economy Corporation (MDEC) is moving to revoke the Malaysia Digital status held by NSO Malaysia Sdn Bhd after local authorities withdrew the company's business licence in Johor.

NSO operates Network School in Forest City, Iskandar Puteri. MDEC said in a statement on Tuesday that it was taking immediate action following the decision by Iskandar Puteri City Council (MBIP).

Why the digital status is being withdrawn

According to MDEC, companies holding Malaysia Digital status must obtain the permits and licences needed for their approved activities and comply with all applicable regulations and licensing requirements.

MDEC said the revocation of NSO's business licence breached that requirement and therefore triggered action to remove the company's digital status.

MBIP had earlier issued NSO with a Notice to Cease Business Operations, effective Wednesday, July 22, 2026. The council cited non-compliance with licensing conditions and the use of premises under its jurisdiction.

Compliance remains a condition for investors

MDEC said it continued to welcome high-quality digital investment into Malaysia, while stressing that compliance with Malaysian laws and regulations could not be compromised.

The case has also attracted claims on social media that Network School was linked to an Israeli agenda seeking a foothold in Malaysia through cryptocurrency-related investment. The report described these as allegations and did not establish them as fact.

The official statement reported by Malay Mail did not set out what would happen next to the school's pupils, employees or existing contractual arrangements following the closure notice.

What it means for foreigners in Malaysia

For foreign families or expatriates connected with Network School, the immediate practical point is that the operator was ordered to cease business from July 22 and now faces the loss of its Malaysia Digital status.

Parents and staff should seek written confirmation directly from the operator about classes, access to records and any outstanding payments. They may also wish to verify the company's licensing position with MBIP or MDEC before making further commitments.

Foreign investors and business operators should also note the wider message from MDEC: digital-sector recognition does not replace the need for local business licences, permits and compliance with the rules governing the premises and approved activities.

22 July 2026