The Network School, a project founded on the belief that the United States is in irreversible decline, is being forced to close its Malaysian campus. The shutdown stems from licensing issues, marking a setback for a venture that aimed to be the first step toward building an entirely new society. Main Developments Malaysian authorities have ordered the closure of the Network School, a community described as "part tech incubator, part self-improvement retreat." The Wall Street Journal first reported the shutdown, which comes after government officials raised licensing concerns about the operation. Founded by entrepreneur Balaji Srinivasan, the program operated out of an abandoned hotel and marketed itself as "a frontier community for techno-optimists." Attendees reportedly encountered less-than-ideal conditions, including moldy rooms and complaints about a lack of women and nightlife at the facility. Read also: Why Robotaxis Face a Regulatory Tug-of-War When the WSJ began asking questions about the project, Srinivasan responded with a lengthy post on X. The founder, who renounced his American citizenship in 2023, declared himself "a proud Singaporean" and accused the publication of preparing a "hit piece" designed to paint him as "an odd duck" rather than "an early adopter." Background The Network School represents the initial phase of a seven-stage plan outlined in Srinivasan's book "The Network State." His stated ambition is nothing less than "to start a new country," with the school serving as the proving ground for that vision. Srinivasan's departure from American citizenship signals a broader ideological shift among some tech figures who view existing nation-states as obstacles rather than frameworks for innovation. His approach treats community building as a precursor to political sovereignty. Why It Matters The shutdown highlights the friction between experimental tech communities and existing regulatory systems. Even a project designed to bypass traditional structures still must contend with local licensing laws and government oversight. For the broader movement toward "network states," the Malaysian episode demonstrates that building parallel societies is more complex than assembling a community and declaring independence. Practical concerns like housing quality, gender balance, and legal compliance remain stubborn obstacles. What's Next Despite the Malaysian setback, Srinivasan has already announced a new agreement to establish a campus in Kazakhstan. The rapid pivot suggests the Network School model will continue, albeit in a different jurisdiction with its own regulatory environment. Whether Kazakhstan proves more accommodating than Malaysia remains an open question. The episode also leaves unresolved how these communities will address the practical shortcomings that plagued the first iteration, from facility conditions to demographic imbalances.