Malaysia Threatens To Deport Israelis Amid Probe Into Tech Community

by Stefan J. Bos, Worthy News Europe Bureau Chief

KUALA LUMPUR/JERUSALEM (Worthy News) – Malaysia’s prime minister has warned that his Islamic nation will immediately deport any Israeli citizens found in the country.

Prime Minister Anwar Ibrahim’s comments emerged as federal authorities investigated allegations that Israelis using dual citizenship were involved in a technology-focused community in Johor’s Forest City.

“We will not allow it,” Anwar told reporters. “If there are Israeli nationals, since we do not recognize Israel, they will be deported immediately.”

The remarks were also seen as a warning to Jewish people. Malaysia does not have an active, organized Jewish community. While a small Jewish population historically thrived in Penang, the last known ethnic Jew there died in 2011, Worthy News learned.

ISRAELI TRAVELERS RESTRICTED

Today, the few individuals of Jewish descent are believed to live discreetly or to have assimilated through conversion, according to sources familiar with the situation.

Malaysia has no diplomatic relations with Israel. Israeli passport holders are forbidden from entering the country without written permission from the Malaysian Ministry of Home Affairs, while Malaysian passports have traditionally carried the inscription: “This passport is valid for all countries except Israel.”

Neighboring Indonesia also has tensions with Israel, although it allows its citizens to enter Israel under certain guidelines, Christians with close knowledge of the situation told Worthy News.

Malaysia’s investigation centers on Network School, a co-living community for startup founders and digital nomads established by former Coinbase executive Balaji Srinivasan.

TECH COMMUNITY SCRUTINIZED

Coinbase is one of the world’s largest cryptocurrency exchanges, enabling customers to buy, sell, transfer, and store digital currencies such as Bitcoin and Ethereum. Srinivasan previously served as the company’s chief technology officer and is prominent in technology and cryptocurrency circles.

Digital nomads are people who use the internet to work remotely while living or traveling in different countries, rather than remaining in a single permanent workplace. They often work in software development, online businesses, finance, consulting, or other technology-related professions.

The Network School project is located in the China-backed Forest City development across the Johor Strait from Singapore. It came under scrutiny after an online promotional video attracted widespread attention.

In the video, residents describe living on “a man-made island near Singapore,” while Srinivasan says: “We’re building Silicon Valley outside Silicon Valley.”

AUTHORITIES WIDEN PROBE

The promotional campaign also drew online criticism. One social media user wrote: “Sounds like a cult, definitely operates like a cult, recruits like a cult.”

Johor state authorities subsequently called for a federal investigation into the community’s activities and the nationalities of those taking part.

Malaysia’s Immigration Department later announced that it had inspected 266 foreign nationals from 40 countries at the site and found they all possessed valid travel documents.

Officials stressed, however, that broader inquiries into the identities and activities of those involved remained ongoing.

SUPPORT FOR PALESTINIAN STATE

Anwar also instructed authorities to examine the project’s business operations, including its premises licenses, accommodation arrangements, and land use. He said any violations should be met with “firm action without compromise.”

Authorities acknowledged that people holding dual citizenship could, in some cases, enter Malaysia using a passport issued by another country, complicating efforts to determine whether Israeli nationals were present.

Anwar emphasized that his government would not compromise on either national security or Malaysia’s longstanding political position toward Israel.

His administration has remained strongly supportive of the establishment of a Palestinian state. It also maintains contacts with Hamas, which is designated as a terrorist organization by the United States, the European Union, and several other countries.

The controversy comes amid heightened tensions across the Middle East, where the war in Gaza continues to influence diplomatic relations and domestic political debate throughout the Muslim world.

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