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Online Scam Issue Straining Thailand-Myanmar Relations

A surge in online scams along the Thailand-Myanmar border has triggered drastic retaliatory measures, including Thailand’s decision to cut off electricity and fuel exports. But will these actions dismantle the scam industry, or will they only deepen tensions and punish ordinary citizens?

Starting from February 5, 2025, Thailand cut off electricity from five locations in Myanmar – three in Kayin State, two in Shan State - which it had been supplying electricity. Locations in Kayin State were connected with Thai electricity grid from Tak and Kanchanaburi provinces, while the ones in Shan State received their electricity via Chiang Rai Province. Simultaneously, Thailand prohibited the export of fuel into Myanmar, causing panic-buying in Myawaddy, a trading town located on Thailand-Myanmar border, cracking down on attempts to smuggle motor fuels across the border. Moreover, China’s President Xi Jinping expressed his gratitude to Thailand’s Prime Minister Paetongtarn Shinawatra for her government’s “strong measures” against the scam industry, during the latter’s visit to Beijing in early February. In response to Thailand’s decision to blockade Myanmar’s border, nationalists held a demonstration to demand that Myanmar government institutes similar retaliatory measures against Thailand.

The decision by Thailand to cut off electricity and fuel to Myanmar in reaction to the border scam industry shows a tough approach, but an ineffective one. Even if aimed at pressuring the criminal networks based out of Myanmar, it does not effectively disrupt the scam industry and adds more diplomatic tensions on top of punishing the innocent civilians. The online scam operations remain functional with alternative power sources. On the contrary, Thailand has done nothing but worsen the sentiment of resentment and nationalism in Myanmar. Instead of this isolated crackdown, a more comprehensive and intelligence-lead approach towards the causes of the scam industry which seeks to improve the bilateral relations, is the more effective solution.

The Thailand’s decision came shortly after cases of foreign nationals forcefully taken to compounds on Thailand-Myanmar border to work for scam operations there. The most well-known among the cases was that of Wang Xing, who was deceptively taken across the border from Thailand and forced to suffer torture in a scam compound. Thailand’s police general personally came to Mae Sot in his rescue. After his rescue, reports emerged of hundreds of Chinese nationals forced to work in scam compounds and Chinese tourists also cancelled in masse their trip to Thailand, so much so that Thailand’s PM had to ask Chinese tourists personally to come visit the country during her trip to Beijing, extolling that Chinese tourists, once arrive to Thailand, will feel at home. Thailand’s tourism industry has suffered significantly from the cancellation, an issue exacerbated by negative descriptions of Thailand on Chinese social media. Thailand’s Defense Minister had personally involved in the implementation of energy cut to Myanmar, signaling that Thailand considers the issue related to national security.

Even before the power cut, Thailand and Myanmar have been putting blame on each other, smearing each other with negative publicity, over the resilience of scam issue. In January 2025, Myanmar’s junta control media argued that scam compounds on the border received electricity, internet access, weapons, and construction materials for their facilities from Thailand and urged Thailand to contribute positively in the effort to eliminate the scam industry. It is also reported that Thai government received millions of baht in revenue for providing electricity to scam compounds across the border. Thailand retorted that they had already cut off electricity to KK Park and Shwe Kukko – where major scam businesses – since June last year. Immediately after the electricity was cut off on February 5, 2025, Thailand’s Deputy Prime Minister Anutin Charnvirakul argued that no blame can be put on for cooperating with the scam businesses. As Myanmar is an authoritarian country, it is plausible to say that anti-Thai demonstrations emerged shortly after the power cut might have the informal sanction of the junta. One of the demonstration’s organizers, Thurein Min Tun, is known for his support for the junta.

The relationship between Thailand and Myanmar has been turbulent for years now, since Myanmar military staged a coup in February 2021. As I have described in a previous article, many Myanmar exiled activists and politicians based their operations in Thailand while resistance forces stationed in eastern Myanmar also received their supplies from Thailand. After Myanmar military announced that it will conscript Myanmar citizens into its war effort, thousands of Myanmar people fled across the border, in both legal and illegal ways. These issues have raised concern for both countries’ governments as the phenomena could threaten their respective national security interests. Moreover, last year, Thailand had to heightened border security as war raged between Myanmar military and the resistance forces over the control of Myawaddy, a trading town on the border. Moreover, the government of Thailand was asked to arrange the transportation for Myanmar soldiers and government officials back into Myanmar after they fled to Thailand following the fall of Myawaddy. Myanmar junta’s jailing of four Thai nationals for illegally fishing in Myanmar waters, despite Thai government’s repeated objection, also didn’t help.  

The relationship between Thailand and Myanmar would continue to degrade until the online scam issue is solved. Despite Thailand’s power cut, the scam sites are able to continue to function on diesel generators. Moreover, before the power cut, operators of scam compounds moved some of their operations to smaller sites south of Myawaddy, especially to Three Pagodas region where the junta’s administrative mechanisms had mostly stopped. These events indicate that, despite governmental measures, the scam industry will continue to exist as a major issue between the two countries. Additionally, as developments show, Thailand’s decision to cut off electricity and power to Myanmar didn’t achieve much of its main goals, except further straining Thailand-Myanmar relations and making the lives of Myanmar citizens who depend on Thailand’s power difficult.

The situation requires Thailand and Myanmar on working towards the problem and stop the blame game. It demands intelligence-based action calculated to be effective in the long run. Tighter control over the law enforcement, robust security of the borders with active interventions against known traffickers and international pressure. Without reciprocated and consolidated attempts the industry will continue unabated stimulating the abuse of large numbers of at-risk people and further destroying the relationship between Thailand and Myanmar.

Htet Hlaing Win

Htet Hlaing Win

Htet Hlaing Win is a contributor to the Myanmar section of Asia in Review, published by the German-Southeast Asian Centre of Excellence for Public Policy and Good Governance (CPG).

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