Bangkok announced on February 4th that it will begin to interrupt the electricity, internet, and oil supply to some areas along the Thai-Myanmar border starting from 9 a.m. on February 5th in order to combat electricity fraud syndicates.
According to reports by Reuters, Thai Deputy Prime Minister Puttan announced the above measures after an emergency meeting of the Thai National Security Council on February 4th. He stated that authorities will instruct the provincial electricity agencies supplying power to these areas to cut off the supply.
According to a 1996 decision by the Thai cabinet, it allowed local electricity agencies in Thailand to sell power to villages in neighboring countries. The local electricity agency in Thailand is the country’s largest power company and a state-owned enterprise under the Thai Ministry of Interior, which has been supplying power to five regions in Myanmar, including the Mae Sot area.
Data from the Thai electricity agency shows that the electricity they supply annually to Mae Sot is enough to sustain a city of one million people.
A report by the United Nations in 2023 revealed that there are over 200 electricity fraud zones in the area, with over 50,000 Chinese nationals involved in these fraudulent activities. The report estimated that the rampant fraudulent activities generate billions of dollars in revenue annually.
With Thailand suddenly cutting off the supply, it seems to have struck a critical blow to the criminal syndicates, cutting off their lifeline. However, an article by a Netease author “Er Xiang Bao” pointed out that it may be premature to say that Mae Sot will collapse as a result.
The article mentioned, “Firstly, the Myanmar military government and local armed groups have a ‘rent-seeking’ relationship. If the power is really cut off, they can easily import electricity from China or India. Secondly, the criminal syndicates have long been prepared with diesel generators, as evidenced by the surge in diesel smuggling along the border in 2022.”
Furthermore, the article pointed out that behind this criminal syndicate are vested interests: the Myanmar military government collects hundreds of millions of dollars in “protection fees” annually, local armed groups rely on profit-sharing from the zones to maintain their weaponry, and even some Thai border officials have been reported to receive benefits. The power cut may just be a signal of a reshuffling of interests. By pressing the “power cut” button, the Thai Deputy Prime Minister is not only giving an account to the Chinese people but also delivering a blow to the Myanmar military government and demonstrating the government’s determination to counter fraud to the international community. However, “We need to be clear-eyed that as long as the political situation in Myanmar remains turbulent, ‘black production incubators’ like Mae Sot will rise again.”
Last month, Chinese actor Wang Xing was lured to Thailand and kidnapped to the Mae Sot electricity fraud zone in Myanmar, before being rescued by Thai police, putting the Mae Sot electricity fraud zone back in the focus of public attention.
Thai authorities, who heavily rely on the tourism industry, are concerned about the impact of such incidents on Thailand’s tourism sector. China is the largest source of tourists to Thailand. In 2024, out of the 35 million tourists visiting Thailand, 6.7 million were from China.
In the wake of the Wang Xing incident, Thai tourism authorities estimate that tens of thousands of Chinese tourists have canceled their travel plans to Thailand.
Prime Minister Petontan of Thailand granted a media interview at the Prime Minister’s Office on February 4th and when asked about the government’s stance on cutting off the electricity supply to Myanmar, she stated that the government has no hesitation in this matter.
She further emphasized during the cabinet meeting that if the situation along the border clarifies, immediate cuts to electricity supply and halting of oil supply are entirely feasible.
Petontan stressed that the top priority is to safeguard the interests of the Thai people as the current situation has had a significant impact on both the Thai people and the country’s image.
She also pointed out that Thailand is facing a serious situation and therefore must take strict measures.
In addition, Petontan will be visiting Beijing from February 5th to 8th to try to reassure the Chinese people who were frightened by the Wang Xing incident.