The Malaysia Digital Economy Corporation (MDEC) has taken immediate action to revoke the Malaysia Digital status granted to NSO Malaysia Sdn Bhd, the operator of Network School in Forest City, Iskandar Puteri, Johor.
In a statement, MDEC said the decision follows the Iskandar Puteri City Council’s (MBIP) move to revoke NSO’s business licence, which resulted in the company no longer meeting the requirements attached to its Malaysia Digital status.
MDEC explained that companies awarded Malaysia Digital status are required to obtain and maintain all relevant permits and licences necessary to conduct their approved business activities, while also ensuring compliance with applicable laws, 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,” the agency said.
MDEC added that while it remains committed to attracting quality digital investments into Malaysia, compliance with the country’s regulatory framework and legal requirements remains a key priority and cannot be compromised.
Earlier, MBIP issued a notice requiring NSO to cease business operations effective July 22, 2026, citing non-compliance with licensing conditions and issues involving the use of premises under the local authority’s jurisdiction.
The development comes amid discussions and allegations circulating on social media claiming that Network School was linked to an Israeli agenda to establish a presence in Malaysia through cryptocurrency-related investment activities. Authorities have not confirmed these allegations.
