SHAH ALAM, July 22 — The Malaysia Digital Economy Corporation (MDEC) is taking immediate steps to revoke the Malaysia Digital status of NSO Malaysia Sdn Bhd, which operates Network School in Forest City, Johor.
MDEC said in a statement today that the action follows the Iskandar Puteri City Council’s (MBIP) decision to revoke NSO’s business licence.
It added that conditions attached to the Malaysia Digital status require that a company obtain relevant permits and licences to carry out approved activities, and to comply with all applicable regulations and licensing requirements.
“The revocation of NSO’s business licence constitutes a breach of this requirement.
“Accordingly, MDEC is taking immediate action to revoke NSO’s Malaysia Digital status,” it said.
MDEC also said it welcomes quality digital investments into Malaysia, but stressed that full compliance with Malaysian laws and regulations cannot be compromised.
MBIP had earlier issued a Notice to Cease Business Operations to NSO, effective today, following non-compliance with licensing conditions and the use of premises under the local authority’s jurisdiction.
There were allegations on social media that Network School was linked to an Israeli agenda to establish a foothold in Malaysia through cryptocurrency-related investment.
Yesterday, Johor Menteri Besar Datuk Onn Hafiz Ghazi urged the Digital Ministry and MDEC to take action if Network School is found to have breached the conditions or principles governing its Malaysia Digital status or any recognition granted to the organisation.
He said the Home Ministry and its agencies should investigate and take stern action if there is any misuse of second passports, misrepresented identities, breach of entry requirements, or other offences under Malaysian law.
“This matter cannot be taken lightly, especially since Johor is the country’s strategic gateway bordering Singapore. Any weakness or abuse of the immigration system must be addressed immediately, firmly and without compromise,” he said in a Facebook post yesterday.
He added that relevant agencies should strengthen due diligence, including by performing background checks on ownership, funding sources, operational models and narratives promoted by any company or organisation.
He also said inter-agency coordination should also be improved to ensure international investments and initiatives are thoroughly assessed in terms of licensing, immigration, security, premises use, and legal compliance.
Onn Hafiz explained that MBIP’s revocation of NSO’s business licence was done by the book, adding that the move was preceded by reviews of inspection reports, enforcement findings, and representations submitted by the company.
