The week of 12 to 19 July 2026 opened with BN celebrating a landslide in Johor and closed with campaigning under way in Negeri Sembilan. BN won 48 seats in Johor, its strongest result in the state since 2008, while PH retained eight and PN, Bersama and Muda failed to win any.
The next major contest formally began yesterday with nomination day for the 16th Negeri Sembilan state election: 103 candidates are contesting 36 seats ahead of polling on 1 August.
The campaign is unfolding against a sensitive dispute involving the state’s customary institutions, although both Prime Minister Anwar Ibrahim and BN deputy chairman Mohamad Hasan have urged parties to keep the adat issue out of politics.
Meanwhile, Malaysia’s economy grew faster than expected in the second quarter, while premises used by a technology community in Forest City were ordered to cease operations over a licensing violation following unsubstantiated allegations concerning Israeli nationals. This is the week that was.
ELECTIONS
NEGERI SEMBILAN CAMPAIGN BEGINS: 103 CANDIDATES, 36 SEATS, POLLING ON 1 AUGUST
The 16th Negeri Sembilan state election entered its formal campaign phase yesterday, Saturday 18 July, with nomination day completed simultaneously at eight nomination centres across the state. The Election Commission confirmed 103 candidates for 36 seats: 11 two-way contests, 21 three-way contests, two four-cornered contests, and two five-cornered contests. The 14-day campaign period is now under way until 11.59pm on 31 July, with early voting on 28 July and polling day on 1 August 2026. A total of 889,490 voters are eligible to cast their ballots. Negeri Sembilan police have deployed 4,800 officers for the election period, with a further 1,373 from Bukit Aman in support.
Unlike Johor, Negeri Sembilan sees a contest across multiple fronts. PH contests all 36 seats alone. BN is contesting 25 seats under a cooperation arrangement with PN, which fields 11 candidates. In a significant development, Bersatu has broken away from PN and is contesting 24 seats independently under its own logo, meaning the two former PN allies are now competitors in many seats. Berjasa, ASLI, PSM, and four independents complete the field.
The incumbent PH government under Menteri Besar Datuk Seri Aminuddin Harun is defending 17 of 36 seats, requiring a net gain of two to secure a simple majority of 19. Aminuddin himself has moved from his long-held Sikamat seat, which he represented for four consecutive terms since 2008, to contest the BN stronghold of Linggi, where he faces a three-cornered fight against BN’s incumbent Datuk Mohd Faizal Ramli and Bersatu’s Zamri Said.
Aminuddin acknowledged the move was a personal decision and a calculated risk. DAP secretary-general Anthony Loke is defending Chennah, which he has held since 2013. Parti Bersama Malaysia, having been wiped out in Johor with all 15 deposits forfeited, has opted out of Negeri Sembilan entirely, announcing it will focus its resources on a future Melaka election.
Among the biggest names confirmed at nomination centres yesterday: BN deputy chairman Datuk Seri Mohamad Hasan, known as Tok Mat, filed his papers at Dewan Seri Rembau accompanied by BN chairman Ahmad Zahid Hamidi, seeking a seventh consecutive term as Rantau assemblyman in a straight two-way fight against PH’s Dr Azizul Hakim Mahdi.
Tok Mat has represented Rantau since 2004, serving six consecutive terms. Rantau is a mixed constituency with 54.8 per cent Malay voters, 27.6 per cent Indian, and 16 per cent Chinese. Negeri Sembilan Umno chief Jalaluddin Alias is defending Pertang.
Both sides of the contest moved on nomination day to contain the royal throne dispute as a campaign issue. Prime Minister Anwar Ibrahim had urged all political parties not to drag the royal institution into the campaign.
Tok Mat reinforced this from the BN side, instructing all BN candidates at nomination day to steer clear of the adat issue: ‘Adat must be respected. Don’t mix it with politics, especially during campaigning, because it would only worsen the situation,’ he told reporters after filing his nomination papers at Dewan Seri Rembau.
The related court proceedings nevertheless remain a sensitive backdrop to the campaign. The Seremban High Court contempt hearings involving six individuals, including three Undangs, and the counter-application to set aside the injunction remain listed for July. Any development during the campaign could alter its political tone.
ANALYSIS: Negeri Sembilan is a fundamentally different contest from Johor in almost every dimension. PH is on the defensive, not BN. The opposition is a BN-PN cooperation that reverses the federal unity government framework. The continuing dispute involving the state’s customary institutions adds an unusual and sensitive dimension. And the lessons from Johor’s BN landslide, while instructive, do not translate directly: Negeri Sembilan’s electorate is more evenly balanced, its BN-PH history more complicated, and its recent political turbulence, including the 14 BN assemblymen’s withdrawal of support from Aminuddin in May, more raw. PH needs to persuade voters that it can govern stably, a message complicated by the alliance breakdown that triggered the dissolution. BN-PN needs to convince voters that its cooperation serves Negeri Sembilan’s interests rather than merely partisan calculation. The related court proceedings, although separate from the election, will remain a sensitive backdrop to the campaign. The 1 August result will be read not only as a political verdict but also as a measure of how Negeri Sembilan voters weigh stability, governance and institutional restraint during a period of political uncertainty.
Sources: FMT, 15-18 July 2026; BusinessToday, 18 July 2026; Borneo Post, 17-18 July 2026; The Rakyat Post, 18 July 2026; Malay Mail, 16-18 July 2026; BN Comms, 18 July 2026; MCI Group, 15 July 2026; EC press statement; Bernama via multiple outlets
BN’S BIGGEST JOHOR WIN SINCE 2008: 48 SEATS, PN WIPED OUT, BERSAMA LOSES ALL DEPOSITS
Barisan Nasional won the 16th Johor state election on Saturday 11 July in what can only be described as a landslide of historic proportions. The final Election Commission tally confirmed BN winning 48 of the 56 state seats, against 8 for Pakatan Harapan, with Perikatan Nasional, Parti Bersama Malaysia, and the Malaysian United Democratic Alliance all completely wiped out.
BN crossed the simple majority of 29 seats at 10.32pm on polling night. The result surpassed BN’s 40-seat haul in the 15th Johor election in March 2022, giving the coalition its strongest Johor mandate since 2008, and delivered a two-thirds supermajority that exceeded even BN’s own optimistic projections.
Within BN, Umno won 36 of the 37 seats it contested, three more than in 2022. MCA doubled its haul from 2022, winning 8 of the 15 seats contested. MIC won all four seats it contested. For PH, DAP won six seats, PKR one, and Amanah one, a net loss of four seats compared to their 12-seat haul in 2022.
PN was completely shut out: PAS lost all 11 seats it contested with four candidates losing their deposits; Bersatu lost all 16 of its seats with seven deposit forfeitures. Bersama, contesting its first state election since forming in May 2026, lost all 15 seats it contested.
Rafizi Ramli said preliminary analysis indicated a significant shift in voter support toward BN across all segments regardless of age and ethnicity, and acknowledged the result required careful reflection.
Voter turnout was confirmed at approximately 70 per cent. Johor Menteri Besar Datuk Onn Hafiz Ghazi, retaining the Machap seat, declared: ‘Now that we have won, we must serve everyone, Malays, Chinese, Indians and Orang Asli, because we are all Bangsa Johor.’
ANALYSIS: BN’s 48-seat result is the clearest political signal Malaysia has received in years. It confirms that Johor remains BN’s most reliable fortress and represents a substantial improvement on the coalition’s already commanding performance in 2022. PN’s complete shutout raises questions about the appeal of its political positioning in Johor’s pragmatic, development-focused electorate. Bersama’s first-outing wipeout, losing all 15 deposits, is a heavy result, though not necessarily terminal. What Rafizi and Nik Nazmi must now reckon with is whether their appeal, clearly strong in survey data, translates into the coalition-building and ground presence that wins votes. Negeri Sembilan on 1 August will be a second test in very different terrain. Perhaps the most instructive number of all is BN’s approximately 60 per cent of the popular vote: going alone, without PH, BN won big. That asymmetry in the unity government relationship will be studied closely in Putrajaya as the federal electoral calendar approaches.
Sources: The Edge Malaysia, 12 July 2026; Malay Mail, 11-12 July 2026; FMT, 11-12 July 2026; Malaysiakini, 11 July 2026; Bernama via multiple outlets; EC official results
SOCIETY AND SECURITY
NETWORK SCHOOL PREMISES ORDERED TO CEASE OPERATIONS OVER LICENSING VIOLATION
The Network School, a technology startup community operating within Forest City in Johor, was ordered to cease operations this week after local authorities found one of its premises was running without a valid business licence. Johor Menteri Besar Datuk Onn Hafiz Ghazi confirmed the cessation of business notice was issued by Majlis Bandaraya Iskandar Puteri following an enforcement inspection.
The development followed an investigation launched on 14 July by the Johor government and federal agencies into allegations, first surfaced on the social media platform
Threads, that Israeli nationals had entered Malaysia using second-country passports and participated in the Network School programme. Malaysia does not have diplomatic relations with Israel, and Israeli passport holders require special approval to enter the country.
To understand what exactly was shut down, and why it matters beyond the immediate controversy, it is necessary to understand both the man behind it and what he was trying to build. Balaji S. Srinivasan, 46, is not Malaysian.
He is an American of Indian descent, born on 24 May 1980 in Long Island, New York, and educated entirely in the United States, where he accumulated four degrees from Stanford University including a Bachelor of Science, two Masters degrees, and a PhD in electrical engineering.
In Silicon Valley, he is regarded as one of the most influential technology thinkers of his generation. He co-founded Counsyl, a genetic testing company acquired by Myriad Genetics in 2018 for approximately US$375 million.
He served as a general partner at Andreessen Horowitz, the venture capital firm widely considered Silicon Valley’s most powerful, where he led its earliest investments in both biotechnology and cryptocurrency. He then became the first chief technology officer of Coinbase, one of the world’s largest cryptocurrency exchanges. In 2017, the Trump administration reportedly considered him as a candidate for FDA Commissioner.
In 2022, he self-published The Network State: How to Start a New Country, a book arguing that internet communities organised around shared values could eventually purchase physical territory and negotiate diplomatic recognition from existing nation-states. The Network School in Forest City is his first attempt to put that theory into physical practice.
Srinivasan opened Network School in Forest City in October 2024, describing it as a technology-focused intentional community, or ‘startup society,’ offering structured programmes under the motto ‘Learn, Burn, Earn, Fun.’
Participants pay approximately US$1,500 per month (around RM6,700) for shared accommodation, co-working access, meals, gym facilities, and a curated programme of technical workshops and seminars.
The community had attracted between 300 and 400 participants at various points, drawn predominantly from the global technology, startup, and cryptocurrency sectors.
Srinivasan was explicit about why he chose Malaysia: the government’s KL20 initiative to become a top-20 global technology hub, the Digital Nomad visa, and the Malaysia My Second Home investor visa had, in his words, created the impression that Malaysia was ready to attract global talent and capital.
Network School had, by Srinivasan’s own account, invested more than RM100 million into its Forest City campus, employed dozens of Malaysians at all levels, and argued it had contributed to millions of ringgit in real estate appreciation in a development that had previously been known as a ghost town. Plans for further expansion were publicly discussed before the investigation began.
The Immigration Department said all 266 foreign participants inspected, representing 40 countries, held valid travel documents, although further compliance checks were continuing. Srinivasan described the original allegation as a ‘fake story’ spread by an anonymous social media account.
Despite the immigration clearance, the business licence violation resulted in the cessation notice from MBIP. Prime Minister Datuk Seri Anwar Ibrahim said on 15 July that any Israeli nationals found to have violated immigration rules would be deported, but noted the matter had been referred to the relevant agencies. Forest City developer Country Garden Pacificview Sdn Bhd pledged full cooperation with all investigating authorities.
The episode escalated further on 17 July when Srinivasan posted on X demanding a private audience with the Prime Minister’s office and warning that continued investment from the global technology community would depend on whether Malaysia could maintain an environment where international investors felt assured.
He called for the government to sign a memorandum of understanding with Network School, pointing to Kazakhstan’s MOU with the Solana Foundation as a precedent, and said the planned US$500 million in further investment would remain on hold until sufficient assurances were given.
Onn Hafiz, responding to the ultimatum, said the nationality matter fell under federal jurisdiction and called on Putrajaya to make a clear and final decision on the status of those involved and on the school’s operations.
ANALYSIS: The Network School episode sits at the intersection of three tensions that are difficult to resolve simultaneously: Malaysia’s firm refusal to normalise any relationship with Israel; the country’s stated ambition to position itself as a technology and AI investment hub capable of attracting global talent; and the particular sensitivity of Forest City, a Chinese-funded development that has already generated its share of sovereignty anxieties. Balaji Srinivasan’s Network School is the kind of entity that most tech-ambition governments actively court: well-funded, internationally connected, and capable of anchoring an innovation ecosystem. But the allegation that Israeli nationals entered through back channels activated a political tripwire that cannot be managed through economic argument alone. The government’s response reflects the political and diplomatic sensitivity of the issue. The harder policy question is how Malaysia can attract an internationally diverse technology community while maintaining its established foreign-policy position and enforcing its immigration and licensing requirements consistently. That tension is likely to surface again as Malaysia expands its technology-hub ambitions.
Sources: The Star, 15-17 July 2026; Malay Mail, 15-16 July 2026; FMT, 14-17 July 2026; BusinessToday, 17 July 2026; The Vibes, 16 July 2026; Sinar Daily, 15-17 July 2026; TNGlobal, 17 July 2026; Lowyat forum / Sinar Daily, 17 July 2026; Bernama via multiple outlets
ECONOMY
MALAYSIA’S ECONOMY BEATS EXPECTATIONS AS Q2 GROWTH REACHES 5.8 PER CENT
Malaysia’s Department of Statistics released advance gross domestic product estimates on Friday 17 July showing the economy grew 5.8 per cent in the second quarter of 2026, accelerating from 5.3 per cent in Q1 and exceeding the 5.2 per cent median forecast in a Bloomberg survey of economists.
For the first half of 2026, the economy expanded 5.6 per cent, compared with 4.5 per cent in the same period in 2025.
The stronger-than-expected performance was supported by broad-based expansion across nearly all major sectors: manufacturing grew 7.5 per cent, up from 5.9 per cent in Q1, driven by output in electrical, electronic and optical products, petroleum products, and rubber goods; mining and quarrying rebounded sharply to 10.2 per cent growth; services and construction also contributed positively.
The agriculture sector was the sole exception, contracting 3.7 per cent, attributed mainly to weakness in oil palm and fishing.
Economy Minister Akmal Nasrullah Mohd Nasir said the stronger growth came against the backdrop of the prolonged US-Israel-Iran conflict, concerns over Strait of Hormuz disruptions, and rising energy prices, and described the outcome as evidence that the economy remained strong and resilient.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said in a Facebook post that the growth reflected Malaysia’s resilience under the Madani Economic Framework, while stressing that structural reforms must continue.
Anwar acknowledged that many Malaysians and micro, small and medium enterprises were still struggling despite the headline growth, calling for continued government mindfulness of the gap between aggregate economic performance and household-level experience.
ANALYSIS: A 5.8 per cent Q2 advance estimate, beating a Bloomberg median of 5.2 per cent, is a genuinely strong result that arrives at a politically useful moment for the Madani government: two state elections under way, GE16 approaching, and a public whose economic satisfaction, per the Merdeka Center survey, sits at 46 per cent. Manufacturing and technology-related investment appear to be important contributors distinguishing Malaysia’s current trajectory from a conventional commodity-led cycle. Manufacturing growth of 7.5 per cent suggests that Malaysia is benefiting from policy efforts made over several years to strengthen higher-value industries. The Anwar caveat that many Malaysians and MSMEs are still struggling registers an important truth: GDP growth that does not translate into household income improvement is a political liability regardless of the headline number. The cost-of-living narrative will continue to compete with the growth narrative heading into GE16.
Sources: FMT, 17 July 2026; The Sun, 17 July 2026; The Star, 17-18 July 2026; Xinhua, 18 July 2026; KLSE Screener, 17 July 2026; DOSM advance estimates, 17 July 2026
NUMBERS TO NOTE
103: Total candidates confirmed for the 16th Negeri Sembilan state election across 36 seats; nomination day was held on 18 July 2026; polling on 1 August (EC, 18 July 2026)
48: BN’s final seat count in the 16th Johor state election on 11 July 2026, up from 40 in 2022 and BN’s best result since 2008; PH won 8, all others wiped out (EC official results, 11-12 July 2026)
60 per cent: BN’s approximate share of the popular vote in Johor on 11 July 2026, the highest since the party’s decade-long dominance prior to 2018 (The Edge Malaysia, 12 July 2026)
266: Foreign nationals from 40 countries inspected by the Immigration Department at Forest City in connection with the Network School probe; all found to hold valid travel documents, with further checks ongoing (Immigration Department, 15 July 2026)
Further investment: Network School founder Balaji Srinivasan said planned additional investment in Malaysia had been placed on hold pending assurances from the government (Reuters, 17 July 2026)
5.8 per cent: Malaysia’s Q2 2026 GDP growth, advance estimate, beating the Bloomberg median forecast of 5.2 per cent and accelerating from 5.3 per cent in Q1; first-half growth stands at 5.6 per cent (DOSM advance estimates, 17 July 2026)
7.5 per cent: Growth in Malaysia’s manufacturing sector in Q2 2026, up from 5.9 per cent in Q1, driven by electrical, electronic and optical products, petroleum, and rubber goods (DOSM, 17 July 2026)
WHAT TO WATCH NEXT WEEK
1. Negeri Sembilan campaign: first week of canvassing underway
The 14-day campaign began yesterday. Watch for the tone of the opening week of campaigning, particularly whether the royal adat issue surfaces despite the instructions from both Anwar and Tok Mat to keep it out of the political arena.
The Seremban High Court hearings on contempt proceedings and the injunction set-aside application, both listed for July, could erupt at any moment during the campaign period and change the political temperature overnight.
2. Who swears in the Negeri Sembilan government: the central constitutional question
If PH wins on 1 August, Tuanku Muhriz will swear in Aminuddin as Menteri Besar, reinforcing federal recognition of his position. If BN-PN wins, they will seek the same audience.
Either outcome deepens the recognition question the courts have not yet resolved. Watch for any pre-election legal intervention, Conference of Rulers statement, or federal executive position that clarifies the constitutional landscape before polling day.
3. Network School: PM audience demanded, MOU sought, nationality findings pending
Balaji Srinivasan has escalated by demanding a private audience with PM Anwar’s office and threatening to withdraw all investment unless an MOU is signed.
Watch for whether Putrajaya grants the meeting, how the Home Ministry responds to the nationality investigation findings, and whether any Israeli nationals are confirmed present. The episode has put Malaysia’s tech hub positioning under an uncomfortable international spotlight.
4. Bersama post-Johor: can the party recover before Melaka?
Losing all 15 deposits in Johor is a significant early blow for Rafizi and Nik Nazmi’s third-force experiment. Bersama has already announced it will skip Negeri Sembilan and focus on Melaka. Watch for Rafizi’s formal post-mortem and any changes to the party’s candidate selection or campaign strategy.
5. Q2 GDP official figures and forecast revisions
The 5.8 per cent Q2 advance estimate will be followed by official figures in August. Watch for any upward revision to Malaysia’s full-year 2026 growth forecast from Bank Negara Malaysia, research houses, or the IMF. Bloomberg economists had a median of 5.2 per cent; the beat will likely prompt forecast upgrades across the board.
UNTIL NEXT WEEK
Malaysia enters the week ahead with its electoral and economic narratives pointing in opposite directions.
BN’s Johor landslide and a 5.8 per cent GDP advance estimate both suggest a country and a governing coalition performing above expectations.
But the Negeri Sembilan campaign began yesterday under a constitutional cloud that no GDP figure can clear, and the Network School shutdown is a reminder that Malaysia’s technology ambitions and its political commitments do not always travel in the same direction. The next two weeks belong to Negeri Sembilan.
What happens there will say more about Malaysia’s political future than a single Johor landslide ever could. Malaysia rarely offers a quiet week. This one will be no exception.
EDITORIAL NOTE
All facts in this edition are attributed to named, published sources as indicated. Ongoing investigations and legal proceedings are identified as such. No copyrighted text has been reproduced verbatim. Analysis sections represent the editorial assessment of TNS News.
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