After Thai authorities cut power and stopped fuel deliveries, to stop frauds associated with criminal organizations that operate in Shan State, business activity in Tachileik, Myanmar, a border town, has drastically slowed.

The lack of fuel and electricity is hurting local markets, shops, and small businesses. Many locals are finding it more and more difficult to continue operating under the restrictions since they rely on trade with Mae Sai, Chiang Rai.

Businesses and families are becoming concerned about how long these difficulties will last. While some locals worry that the disruptions are hurting legitimate businesses more than the scam networks, others criticize local officials for not doing more to combat criminal organizations.

Tachileik News Agency reports the economy was already struggling, and the suspension of cross-border trade and frequent outages are making matters worse for a large portion of the population.

Fuel shortages in Tachileik are getting worse as Thai fuel trucks are still not allowed to deliver, and Myanmar authorities have restricted entry for people without passports.

However, The Thai-Myanmar border checkpoint in Mae Sai District, Chiang Rai Province, is still operational in spite of these difficulties.

Residents are traveling into Mae Sai to shop and fill up their cars because the cost of fuel has doubled in the area. Additionally, China and Laos have also ceased supplying Shan State with fuel.

Tachileik Power and Fuel Supplies Cut

Thailand cut power to Tachileik Province on February 5, according to the Tachileik News Agency, forcing the township and surrounding areas to find other sources of energy. Two important Tachileik locations were previously powered by the Electricity Generating Authority of Thailand (EGAT).

The township responded by starting to buy electricity from Laos. But with only a few hours’ notice, Laos cut its supply from 30 megawatts to 13 megawatts on February 6. Tachileik’s Electricity Regulatory Committee convened urgently in response to this abrupt cut, with the goal of examining alternative energy sources and giving priority to power for critical services.

Businesses, hotels, hospitals, financial institutions, and homes share the remaining 8 megawatts of the 13 megawatts that are currently available, with 5 megawatts designated for street lighting.

Scam Gang Problem

Myanmar, Cambodia, and Laos have emerged as major hubs for online scam operations, with people lured to secretive compounds by false advertising of well-paid jobs and forced to work by criminal groups operating online scams targeting people all over the world.

That has had an impact on Thailand’s reputation, as multiple high-profile stories have emerged of Chinese people being lured to work in Bangkok only to be trafficked into a scam compound in Myanmar, with Chinese actor Wang Xing being the most recent victim.

Thai and Chinese officials have taken public steps to address the scam, including Liu Zhongyi, China’s vice minister of public security, who visited the Chiang Rai-Myanmar border.

On February 5th, Thailand cut off electricity and fuel supplies to some areas of Myanmar near its border in an attempt to disrupt the scam compounds’ operations. The effect is unclear because compounds frequently have their own generators.