When Development Turns Grey : The Case of Shwe Kokko City

In recent years, regional authorities have begun to respond to growing concerns. Thailand, which serves as a primary gateway to activities in Shwe Kokko, has taken decisive actions. In May 2024, the National Broadcasting and Telecommunications Commission (NBTC) of Thailand cut off internet and mobile network access to Shwe Kokko, citing the operations as illegal (Strangio, 2024).  This followed a prior move in June 2023, when electricity supply to the area was severed after diplomatic pressure from China on Myanmar's ruling military council. These measures---targeting telecommunications and power infrastructure---disrupted scam syndicate operations in the area. In response to international pressure, the Karen Border Guard Force (BGF) reportedly began preparing independent backup supplies, while Thai authorities initiated rescue efforts for victims.

Thailand also launched cross-border law enforcement operations. By early 2025, the Thai government claimed to have rescued approximately 7,000 victims from scam centers along the border (Hunt, 2025). While this number remains small in comparison to the estimated hundreds of thousands of online scam victims across Southeast Asia, it signals an escalation in law enforcement commitment. Diplomatic pressure has also intensified. Senior Chinese officials have publicly urged Myanmar to crack down on cross-border criminal activities near the Thai border. 

In October 2024, the European Union imposed sanctions on leaders of the Karen BGF militia---including Colonel Saw Chit Thu---explicitly identifying Shwe Kokko as a center of criminal activity involving torture and slavery. Soon after, in May 2025, the United States froze the assets and imposed travel bans on military figures accused of "facilitating" online fraud and human trafficking schemes. These developments reflect serious regional concern over the lawlessness surrounding Shwe Kokko.

Meanwhile, the situation within Myanmar remains unstable. In April 2023, intense clashes erupted near Shwe Kokko as opposition Karen forces (KNLA) and the armed wing of the shadow government launched attacks on BGF outposts (Hunt, 2023). More than 10,000 civilians reportedly fled across the border into Thailand due to the violence. Ironically, such instability has been exploited by criminal syndicates. Reports have indicated that one scam compound held as many as 10,000 victims "forced to operate online fraud businesses." These events underscore the fragile nature of state control in the region---where armed conflict and the unchecked growth of illicit investment continue to coexist.

Conclusion

The transformation of Shwe Kokko into a glittering "new city" serves as a stark warning. When large-scale development is allowed to proceed without stringent oversight, such regions can become de facto "crime havens" for transnational syndicates. As some observers have put it, Shwe Kokko represents a "southeast of sovereignty for sale"---a territory effectively handed over to rogue investors who fill it with illicit activity. This case underscores a critical truth: economic prosperity alone is not enough. Without the rule of law and transparency, even the most appealing development project can become a Trojan horse for organized crime. The key takeaway is clear: state supervision must accompany infrastructure and investment projects, ensuring that the glow of progress at the frontier does not become a cover for international fraud colonies.