US State Department summons Malaysian envoy over anti-Semitism claims

Malaysia's ambassador to the United States, Tan Sri Muhammad Shahrul Ikram Yaakob, was contacted by the US State Department seeking clarification after several American congressmen alleged that Putrajaya's immigration policies were anti-Semitic.

Foreign Minister Datuk Seri Mohamad Hasan said Shahrul had officially reaffirmed Malaysia's longstanding policy of not recognising Israel, describing it as consistent with the country's existing foreign and immigration policies rather than a new stance.

"Malaysia has never recognised Israel or the Zionist regime. Therefore, the implementation of our immigration policy is consistent with that position," Mohamad told reporters after attending the Santai Bersama Tok Mat Hasan programme in Pedas, Rembau, on 21 July 2026.

He said Wisma Putra, Malaysia's foreign ministry, had also engaged separately with the chargé d'affaires at the US embassy in Kuala Lumpur. "Both sides have agreed to manage this matter in the best possible way," he said.

State Department acknowledges Malaysian position

Mohamad said the State Department had acknowledged and respected Malaysia's long-standing policy of not recognising Israel, and that this addressed the substance of the congressmen's complaint.

"As such, the issue of Malaysia purging Jews, as claimed, does not arise. If a person holds an Israeli passport, Malaysia does not recognise it, in line with national policy. It is not because they are Jews," he said.

Congressmen demand policy reversal

Eight US congressmen had, in a letter to US Secretary of State Marco Rubio sent on Tuesday, 21 July 2026, urged Washington to suspend military training funds for Malaysia unless Putrajaya reversed what they termed a "discriminatory policy" within 15 days.

The letter specifically called for the suspension of the International Military Education and Training (IMET) programme, which provides professional military training for Malaysian personnel in the United States.

Background: Anwar's deportation remarks

The dispute stems from remarks made by Prime Minister Datuk Seri Anwar Ibrahim on Wednesday, 15 July 2026, that Malaysian authorities would track down and deport any Israeli nationals found to be involved with Network School, a technology community project based in Johor.

The remarks followed reports of alleged Israeli links to individuals connected with Network School, operated by NS0 Malaysia Sdn Bhd at Forest City in Johor.

Subsequently, the Johor state government backed a decision by the Iskandar Puteri City Council (MBIP) to revoke Network School's business licence, ordering the organisation to cease operations from 22 July 2026.

Johor Chief Minister Datuk Onn Hafiz Ghazi said the revocation followed verified complaints, completed inspections and identified regulatory non-compliance, and called on federal security agencies to continue investigating any immigration offences linked to the organisation.

Malaysia's Immigration Department has said it is tracing 19 of 430 foreign visitors linked to Network School, though officials have found no evidence that visitors misused their passports or that Israeli nationals were present during earlier inspections.

Founder announces Kazakhstan expansion

The closure has also affected Network School's investment plans, with American technology investor Balaji Srinivasan announcing on 17 July that the organisation had suspended a planned RM500 million (US$122 million) expansion in Malaysia pending clarity on its regulatory status.

Balaji later on 22 July announced that Network School had signed a memorandum of understanding with the Republic of Kazakhstan to establish a new campus there.

He said the arrangement would include expedited visas, streamlined redomiciliation and active recruitment of talent.