A diplomatic dispute has erupted between the United States and Malaysia over Kuala Lumpur's longstanding policy of barring Israeli nationals from entering the country. The State Department summoned Malaysia's ambassador to Washington to explain the policy, a move that has drawn growing criticism over whether the matter warranted such a formal diplomatic step.
According to Malaysia's Ministry of Foreign Affairs, Mohammad Sharul Ikram Yaakob, Malaysia's ambassador to the United States, was recently called to the State Department to explain the country's policy of not recognizing Israel. Foreign Minister Mohammad Hasan said the summons was unwarranted. "This has always been Malaysia's policy," he said. "Our entry policy simply reflects our longstanding position of not recognizing the state of Israel or the Zionist regime."
The immediate trigger was a "digital nomad" community called Network School, established in Forest City in the southern state of Johor by Balaji Srinivasan, the former chief technology officer of cryptocurrency exchange Coinbase. Claims circulated online that Israeli nationals — barred from entering Malaysia — had slipped in using foreign passports. Authorities launched an investigation and identified about 10 individuals believed to hold dual citizenship. One person holding both US and Israeli citizenship had entered on an American passport; once their Israeli citizenship was discovered, they were ordered to leave. Johor state authorities separately found that Network School had violated regulations governing permits and facilities, and ordered the cancellation of its business registration and the suspension of its operations.
Malaysia, a Muslim-majority country that supports Palestine, has for decades maintained a policy of not recognizing Israel as a state and barring Israeli nationals from entering without prior special approval from authorities. Officials stressed that the policy is neither new nor a measure crafted in response to this incident.
Despite this, eight Democratic members of the US House of Representatives — including Rep. Brad Sherman — wrote to Secretary of State Marco Rubio urging a review of security and economic ties with Malaysia, arguing the policy violates international law. They specifically called for cutting off support under the International Military Education and Training program if Malaysia does not reverse course. "Malaysia's non-recognition of Israel is troubling enough," they wrote, adding that the country "should not receive support funded by American taxpayers."
Prime Minister Anwar Ibrahim pushed back directly. He drew a clear line between the policy and antisemitism, saying it reflects opposition to Israel's oppression and occupation of Palestinians — not hostility toward Jewish people. "We are opposed to Israeli citizens coming here, not Jews — because they are complicit in the killings, crimes, continued oppression and colonization of Palestine and Gaza," Anwar said. He added that Malaysia is a sovereign nation and that while US lawmakers may issue threats, he would firmly stand by the decisions of the Malaysian people. However, he said the dispute should not damage the broader relationship with the United States, and that American citizens, companies, trade and investment remain welcome.
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