A fire erupted on Thursday afternoon on the top floor of a 10-storey hotel in Shwe Kokko, a town in Myawaddy township on the Thailand-Myanmar border, casting a spotlight on the region’s ongoing battle against illegal activities. The blaze, now under control according to the Karen Border Guard Force (BGF), has prompted investigations into its cause and the extent of damage. Yet, it also raises broader questions about the effectiveness of recent crackdowns on call-centre scams and human trafficking in this volatile border zone.
The building, owned by the Chinese conglomerate Yatai International Holding Group, is visible from Tak province in Thailand, just across the Moei River. Thai officials have long suspected it of serving as a hub for scam operations, a suspicion that ties into the area’s notorious reputation as a hotspot for illicit businesses. While the fire’s origins remain unclear, its timing—amid a sweeping operation by the BGF to curb illegal activities—adds a layer of complexity to an already fraught situation.
A Region Under Scrutiny
Shwe Kokko, often dubbed a “lawless enclave,” has drawn international attention for its role in call-centre fraud, where victims are lured with false job promises only to be coerced into scamming others online. Security officials believe many such operations have recently relocated following intensified enforcement. Last week, the BGF reported the repatriation of nearly 8,000 foreign nationals—predominantly from China, Vietnam, and Indonesia—over the past month. The force claims that 98% of those repatriated knowingly came to work in Shwe Kokko, rather than being trafficked under deception, a statement that has sparked debate about accountability and victimhood in these schemes. 
The crackdown follows Thailand’s decision on 5 February to sever electricity, internet, and fuel supplies to five border areas, including Myawaddy, Tachileik, and Phaya Thonsu townships. This drastic measure aimed to disrupt the infrastructure supporting scam networks, which have cost victims worldwide millions of dollars. Thai authorities estimate that cross-border fraud originating from these zones generates significant revenue for organized crime, often with alleged ties to influential figures on both sides of the border. While no concrete evidence links specific entities to the Shwe Kokko hotel, the property’s ownership by a major Chinese conglomerate fuels speculation about the intersection of legitimate business and illicit activity in the region.
Fire as a Symptom of Larger Issues
Thursday’s fire, while contained, symbolizes the simmering tensions in Shwe Kokko. The BGF, a militia aligned with Myanmar’s military but operating with relative autonomy in Karen State, has positioned itself as a stabilizing force in the crackdown. Yet, critics argue that its role is conflicted, given historical accusations of complicity in border trade and smuggling. The group’s assertion that most repatriated individuals were willing participants in scam operations has also drawn skepticism from human rights advocates, who caution that coercion and exploitation may be underreported.
“We need clearer data on how these workers ended up in Shwe Kokko” said a Bangkok-based NGO representative focused on trafficking issues. “Many may have been misled about the nature of the work or trapped by debt and threats.” The complexity of distinguishing between voluntary and forced labor underscores the challenge of addressing human trafficking in a region marked by porous borders and limited oversight.
Beyond the immediate incident, the fire highlights the physical risks tied to unregulated developments in Shwe Kokko. Rapid construction of hotels and casinos, often backed by foreign investment, has outpaced safety standards, according to local sources. If the blaze was caused by electrical faults or negligence—as some preliminary reports suggest—it could prompt calls for stricter building codes, though enforcement remains a hurdle in a township where governance is fragmented.
Thailand’s Hardline Stance
Thailand’s move to cut off essential services to border areas reflects a growing frustration with cross-border crime. Call-centre scams have not only damaged the country’s international image but also strained relations with Myanmar, where political instability since the 2021 coup has hampered bilateral cooperation. Thai officials report that scams targeting citizens of multiple countries, including the United States and Australia, often trace back to hubs like Shwe Kokko, with losses running into the hundreds of millions of USD annually. (As of 21 March 2025, 1 USD equals approximately 33.5 Thai Baht, though local currencies in border transactions vary widely.)
The service blackout, while effective in disrupting some operations, has also had unintended consequences. Humanitarian groups warn that it risks punishing vulnerable communities who rely on cross-border trade for survival, exacerbating economic hardship in an already war-torn region. On X, users in Thailand have expressed mixed sentiments, with some praising the government’s tough stance while others question its impact on innocent residents. A post from a Tak-based account read: “Cutting power hurts scam gangs, but what about families who can’t afford generators?”
Geopolitical Undercurrents
The situation in Shwe Kokko cannot be divorced from broader geopolitical dynamics. Myanmar’s ongoing civil conflict, pitting the military junta against ethnic armed organizations and resistance groups, has turned border areas into contested zones. The BGF’s crackdown, while framed as a law-enforcement effort, may also serve strategic interests, consolidating control over a lucrative frontier. Meanwhile, China’s economic footprint in the region—evident in investments like Yatai International’s holdings—adds another layer of influence, with Beijing often advocating for stability to protect its Belt and Road Initiative projects nearby.
If the fire investigation reveals foul play or links to displaced scam networks, as some speculate, it could reignite debates over foreign involvement in Myanmar’s border economy. However, no evidence currently supports such claims, and officials on both sides urge caution until findings are released. Thai authorities, for their part, are monitoring the situation closely, aware that any escalation could spill over into Tak province, a key trade corridor.
Human Stories Behind the Numbers
The repatriation of nearly 8,000 individuals offers a glimpse into the human toll of Shwe Kokko’s illicit economy. While the BGF insists most came willingly, personal accounts—gathered by regional media—paint a murkier picture. Some workers describe being promised high-paying tech jobs, only to find themselves scripting scams under duress. Others admit to knowing the work was illegal but cite desperation as their motive, with one Vietnamese national reportedly saying: “I had no choice—debts at home left me nowhere else to go.”
For now, the fire’s aftermath serves as a stark reminder of the region’s fragility. As investigators sift through the charred remains of the Shwe Kokko hotel, and as repatriated workers return to uncertain futures, the border town remains a microcosm of larger struggles—between law and lawlessness, profit and exploitation, stability and conflict. Whether recent crackdowns will yield lasting change, or simply push illicit operations deeper underground, is a question that looms over both sides of the Moei River.
