When Development Turns Grey : The Case of Shwe Kokko City

On the frontier between Myanmar and Thailand now stands a new city---Shwe Kokko---shimmering with neon lights and towering buildings. International media reports describe the area as a "neon-lit settlement" filled with casinos and online scam operations (Strangio, 2024). Yet behind the dazzling entertainment lies a more troubling reality :  a "new city"  project, initially promoted as an investment hub, has evolved into a center for transnational criminal networks.

History and Transformation of Shwe Kokko

Shwe Kokko was formerly known as Kawmoora, a fierce battleground between Karen partisans and the Myanmar military during the 1990s (Strangio, 2024).  In 2017, Colonel Saw Chit Thu---leader of the Karen militia who had since been integrated into the Karen Border Guard Force (BGF)---signed a partnership agreement with a Hong Kong-based company, Yatai International.  A year later, in 2018, the Myanmar Investment Commission approved a US$22.5 million investment to develop 59 villas and residential facilities in Shwe Kokko (Lwin, 2020).  However, the rapid progress of the project soon raised suspicions. By 2019, local media reported that the construction had already exceeded the scope of its initial permit, leading to a temporary halt due to regulatory violations (Lwin, 2020).

Although the government established an investigative tribunal in 2020 to examine alleged misconduct---including opaque land acquisitions and suspicious financial flows---the project continued under the rule of Myanmar's military junta following the 2021 coup. With weak oversight from the central government, the Shwe Kokko development expanded significantly, supported by a close collaboration between Yatai IHG and the Karen BGF militia (Lwin, 2020).

She Zhejiang's Profile

One of the key figures behind the Shwe Kokko project is She Zhijiang, a Chinese-born businessman who also holds Cambodian citizenship. He is also known by the alias Tang Kriang Kai. She Zhijiang has long been a fugitive due to his involvement in illegal cross-border gambling operations. According to media reports, he was previously convicted in China for operating an "illegal lottery" scheme that generated hundreds of millions of dollars before fleeing the country in 2012 (Faulder, 2022). From Cambodia, his business empire expanded across various Southeast Asian countries. Reuters reported that at the height of his operations, She Zhijiang headed an online gambling and casino conglomerate that spearheaded the development of an entertainment complex in Shwe Kokko valued at approximately US$15 billion (McPherson & Wongcha-um, 2025).

However, in August 2022, She Zhijiang was arrested in Bangkok by Thai authorities at the request of the Chinese government. He was charged with running illegal online casinos (Faulder, 2022). To this day, Zhijiang remains in a Thai prison awaiting extradition proceedings (Faulder, 2022). Although Yatai IHG denies any involvement in organized crime, She Zhijiang's reputation---marked by allegations ranging from gambling fraud to human trafficking---continues to cast a long shadow over the Shwe Kokko project.

Illicit Activities in Shwe Kokko 

As the new city took shape, Shwe Kokko instead emerged as a hub for various transnational crimes. The European Union has identified the area as a "center of transnational crime," encompassing online scams, drug trafficking, and human trafficking (Strangio, 2024). Victims have come from a wide range of countries across Southeast Asia and beyond. Media reports and government officials indicate that job seekers from Malaysia, Indonesia, India, Thailand, Taiwan, Hong Kong, the Philippines, as well as Kenya and Bangladesh, were lured by false promises of high-paying employment opportunities (Zaw, 2023).  Upon arrival in Shwe Kokko, many were "imprisoned and forced to work as online scammers" by organized criminal syndicates. Numerous victims attempted to escape under violent conditions, and families were often extorted for ransom payments to secure their release. A Malaysian politician even compared the Shwe Kokko housing complex to a 20-block "maze," where tens of thousands of individuals were confined in overcrowded rooms.

The scope of fraudulent operations in Shwe Kokko extended beyond Asia. The "pig-butchering" scam---an elaborate online investment fraud---was rampant, targeting not only Chinese nationals but also Western victims, particularly elderly individuals in Europe and the United States. In addition, criminal networks in the area have reportedly been involved in other illicit activities, including illegal gambling and prostitution.In short, what was once promoted as a special economic zone and entertainment hub has, in reality, become a lucrative engine of international criminal enterprise.

Current Conditions and Government Response

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.