US lawmakers demand M'sia reverse 'anti-Semitic' policy in 15 days, propose military funding cut

Several US lawmakers have urged Malaysia to reverse what they described as an anti-Semitic policy within 15 days, proposing that Washington suspend military training funding if Putrajaya does not comply.

The call was made in a letter by eight House Democrats, led by Congressmen Josh Gottheimer and Greg Landsman, to US Secretary of State Marco Rubio, following Prime Minister Anwar Ibrahim’s recent remarks that Malaysia would deport any Israeli citizens found in the country.

In the letter, the lawmakers asked the US State Department to clarify what steps it was taking in response to Anwar’s remarks, while urging Rubio to suspend the International Military Education Training programme if Malaysia did not reverse the policy.

The lawmakers also accused Malaysia of maintaining ties with Hamas, the Palestinian militant group that governs the Gaza Strip, claiming that the group's fighters had trained on Malaysian soil.

They alleged that the Malaysian government was “welcoming terrorists while targeting Jews”.

"For millennia, Jews around the world have seen this playbook. The demonisation and expulsion of Jews eventually lead to the worst-case outcomes. It is necessary that the US push back on this antisemitism.

"Malaysia's refusal to recognise Israel is troubling enough. But it is totally unacceptable that a head of government has publicly declared that his country will hunt down and expel citizens of our close ally based solely on their nationality. It should not be underwritten by the American taxpayer," the group said.

They added that Malaysia also benefits significantly from access to American technology and markets, and that, given these "points of diplomatic leverage", the US should make it clear to Anwar and his government that American aid and support come with the expectation that it will not target the citizens of one of Washington's closest allies.

"We, therefore, urge you to undertake a review of our security and economic relationship with Malaysia to ensure that it is serving the best interests of the US," the letter further read.

Apart from Gottheimer and Landsman, the six other signatories are Jimmy Panetta, Debbie Wasserman Schultz, Brad Sherman, Dan Goldman, Jared Moskowitz and Jake Auchincloss.

The Network School saga

The statement comes on the heels of the Johor government's stern action to shut down tech commune, the Network School, a co-working space in Forest City.

The Iskandar Puteri City Council (MBIP) said its decision to revoke the organisation's business licence followed inspections on July 12, 14, 19 and 20, which uncovered multiple breaches falling under the local authority's jurisdiction.

In a separate statement, Johor Menteri Besar Onn Hafiz Ghazi backed the council’s decision, saying it was made in accordance with the law after the company’s explanations and inspection findings were reviewed.

He stressed that enforcement action was taken only after verifying complaints and establishing non-compliance. Onn also urged Putrajaya to strengthen scrutiny of foreign investors entering Malaysia.

The organisation's operations came under public scrutiny after allegations circulated on social media that it was hosting Israelis using second passports.

The issue escalated on July 14 after Onn urged federal authorities to investigate the claims.

Amid the controversy, Network School founder and American tech investor Balaji Srinivasan sought a meeting with Anwar, saying that the global tech community needed assurances before committing further investments in Malaysia.

READ MORE: 'Give us assurances or lose our capital': Tech commune founder demands audience with PM after scrutiny

In a post on X on July 16, Srinivasan said the organisation had invested more than RM100 million in Malaysia and had put further investments by Network School and its partners on hold pending greater certainty from the government.

He maintained that the community had complied with Malaysian laws and respected the country’s sovereignty.

A day later, Srinivasan denied reports that Network School was shutting down, saying it had received two notices from authorities and would rectify the issues within the prescribed remedial period.

He added that the notices did not affect the community’s residents.

Last week, Anwar warned that any Israeli national found in Malaysia would be deported immediately if found to be in breach of the country’s laws, following allegations that Network School was hosting Israelis.

He reiterated Malaysia’s uncompromising stance on the matter, adding that the relevant authorities were investigating the claims.

Malaysia Digital status revoked

In a statement yesterday, the Malaysia Digital Economy Corporation (MDEC) announced that it will also revoke Network School’s Malaysia Digital (MD) status.

MDEC said businesses seeking MD status must obtain the relevant permits and licences, as well as comply with licensing conditions.

It added that Network School had breached these requirements after MBIP revoked its business licence.

Earlier today, The Star reported that the Network School has been shuttered, at least temporarily, according to a notice at the premises, with signage removed or covered.

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