Clarification on situations in Myawady Region

MYAWADY Township in Kayin State lies along the Myanmar– Thailand border and is a stra­tegically important area on the India-Myanmar-Thailand Asian Highway. Most Kayin armed groups operate and maintain bases in this region. In 2015, Kay­in armed organizations such as the DKBA, KNU/KNLA-PC, and the KNU signed the Nationwide Ceasefire Agreement (NCA). As stability improved following the agreement, development activities were carried out in the area. However, during this peace-making period, the KNU took advantage of the situation and, citing various pretexts, launched the Shwe Kokko pro­ject in the Brigade 7 area in 2016. It was also found that in 2017, the Chongkhaed Garden Resort casino project was initiated in Chongkhaed village, and in early 2020, the KK Park project was launched in the Maethawtalay area under Brigade 6.

 

According to reports, KNU leaders have unlawfully exer­cised their authority by leasing state-owned land under long-term contracts and renting it out to foreign nationals. They also collected payments to provide protection for illegal casinos and other criminal activities. Most of the foreign nationals who settled in this area came from Sihanoukville, Cambodia – a city known for its casino industry. When gambling businesses in Sihanoukville expanded rapidly, criminal activity increased as well. Locals, who lacked lan­guage skills, faced difficulties in earning a livelihood, and the entire city became dominated by foreigners. Along with the casinos, local people also ex­perienced unlawful abuse and coercion by mafia groups. Be­cause of these experiences, local Kayin communities feared that Myawady would become another Sihanoukville. Therefore, they opposed these projects and re­fused to accept the gambling businesses. It was also reported that during the KNU Congress held in April 2023, participants called for action against KNU leaders who were allegedly in­volved with crime syndicates and online scam groups operating in Shwe Kokko, Chongkhaed, and KK Park. Although the KNU formed an investigation team, the probe was described as merely superficial. No findings were transparently released to the public, and no accountability measures were taken. Based on these circumstances, it has be­come increasingly apparent that KNU leaders are closely involved in the illegal online fraud and gambling operations taking place in the Myawady region.

 

The Myanmar government did not authorize or approve the expansion of illegal buildings now seen in the Myawady area. The origin of these operations traces back to the Shwe Kokko project, which began in 2017. The Shwe Kokko project was devel­oped as the Myanmar–Thai Shwe Kokko Special Economic Zone by Yatai International Holding Group in partnership with Chit Linn Myaing Company. Prepara­tions for the project had already begun around 2016, during which discussions were reportedly held with the then Kayin State Chief Minister under the NLD gov­ernment. It is understood that in April 2017, the developers sought approval from the Myanmar In­vestment Commission (MIC). The Commission stated that the project proposal submitted to them did not include any plans to build casinos. MIC approved only 25.5 acres for the project. By ear­ly 2019, residents reported that construction had expanded far beyond the authorized areas. As a result, the NLD government at that time formed an investigation committee in August 2019. Fol­lowing this inquiry, the project’s operations were temporarily sus­pended. This issue was raised during the 17^th regular session of the Second Pyithu Hluttaw, when the representative from Myawady constituency submit­ted a question about the project. In response, the Deputy Minis­ter for Investment and Foreign Economic Relations, U Bharat Singh, stated that approval had been granted in accordance with the law for the construction of high-standard residential build­ings on 25.5 acres of land. He add­ed that if the project violated or failed to comply with the required legal regulations, action would be taken under the Myanmar In­vestment Commission Law. Lat­er, it was found that individuals linked to gambling businesses spread narratives claiming that the suspended project was part of China’s Belt and Road Initia­tive (BRI), in an attempt to justify continued operations. Because of this misinformation, the Chinese Embassy to Myanmar clarified in July 2020, during Ambassa­dor Chen Hai’s meeting with the Commander-in-Chief of Defence Services, that the project was not part of the BRI. It was also found that only the Shwe Kokko project had been partially reported to the government, whereas the other projects, such as Chongkhaed and KK Park, were never sub­mitted for approval at all.

 

Another gambling project, the Chongkhaed Garden Resort casino in Chongkhaed village, Myawady Township, was report­edly initiated in 2017 by Sai Kyaw Hla, a Brig-Gen-level leader of the KKO group. Investigations found that in November 2019, the project signed an agreement with the Thailand-based Thai Chan Company to expand into online gambling operations.

 

The KK Park project was reportedly initiated in Febru­ary 2020 under an agreement between the KNU-affiliated Mulaei Ahlin Company and the Huanya International Holding Group, with oversight from Thai­land-based Trans Asia Interna­tional Holding Group. According to the agreement, Mulaei Ahlin provided assurances that the signatures of the current KNU Chairman Saw Kwe Htoo Win and Saw Roger Khin, head of the KNU Defence Department, were included. Investigations also found that Mulaei Ahlin Com­pany is owned by Saw Doe Soe Johnny, the eldest son of KNLA Chief of Staff Saw Johnny. On the ground, the project is reportedly managed by his batmen Saw Win Kyaw and Saw Kyaw Thu.

 

After February 2021, amid political situations, it was report­ed that illegal construction was being expanded in these areas, taking advantage of the country’s security situation. Materials and basic supplies for these build­ings were reportedly imported via Thailand, and foreign-owned companies were involved in su­pervising the operations. Satel­lite imagery from 2021 to 2025 clearly shows the extent of the construction and expansion in the area. Starting in February 2023, the Kayin State government instructed authorities to monitor and prevent further illegal con­struction. Local administrative bodies implemented these direc­tives, filing lawsuits against indi­viduals holding Form-7 land-use certificates who were building illegally, and revoked their land-use rights according to proper procedures.

 

Illegal criminal activities cannot be carried out in areas under the direct administration of the Myanmar government that are stable and secure. On 27 March 2021, the KNU re­portedly attacked and seized the Thimuhta security outpost in Papun Township, under Bri­gade 5, violating the Nationwide Ceasefire Agreement (NCA) and destabilizing the region. KNU Brigade 6 reportedly conducted violent protests within the coun­try, accepted fleeing youths for military training, and cooperat­ed with NUG-affiliated militant groups to arm PDF fighters. On 5 April 2024, KNU and PDF forces jointly attacked and seized the town of Thingan-Nyinaung, while armed militants took control of the Asian Highway between Kawkareik and Thingan-Ny­inaung. Throughout the Kayin State border regions, KNU and allied militant groups reportedly engaged in battles against se­curity and administrative forc­es, deliberately undermining local stability. Through these operations, KNU-controlled ar­eas reportedly became zones where armed groups collected protection fees and facilitated illegal online gambling and other criminal enterprises, operating outside the law.

 

As part of its national re­sponsibility, the government has aimed to eliminate illegal online gambling operations. In line with this objective, in July 2025, government security forces Kawkareik section of the Asian Highway, which had been tem­porarily controlled by armed groups. By September 2025, they also restored control over the Kawkareik-Thingan-Nyinaung section, at significant risk and effort to the lives of security per­sonnel. KNU and allied armed groups had reportedly used illicit revenue, manpower, and financial resources to undermine region­al stability and the rule of law. Tatmadaw conducted difficult military operations to counter these activities and restore order. On 19 October 2025, government forces regained full control over the border areas, including Law­kaekaw, enabling effective.

 

Foreign nationals who crossed into Myanmar through illegal routes from Thailand and carried out criminal activities, including online gambling, have been continuously arrested and detained, with arrangements made to transfer them to their respective countries. From 5 October to 26 November 2025, a total of 68,582 foreign nationals from 52 countries were repat­riated. To prevent the re-estab­lishment of online gambling and other criminal activities in the Myawady region, illegal build­ings have been systematically demolished and cleared. In the KK Park area alone, 256 struc­tures have been destroyed to date, with 379 remaining struc­tures scheduled for demolition. The ongoing crackdown on on­line gambling operations has led KNLA and PDF-affiliated terror­ist groups to stage attacks and disrupt security across Myawady, Laekaekaw, and surrounding areas. Between 31 October and 26 November 2025, 25 clashes occurred, during which some se­curity personnel lost their lives. Despite these challenges, the government continues its efforts to eliminate illegal criminal op­erations. In addition, stronghold structures are being demolished to ensure that online gambling cannot resume. Land is being levelled, mines dismantled, and river sources blocked as part of these operations.

 

Based on statements from detained foreign nationals, it has been confirmed that they entered Myanmar from Thai­land, as previously reported. Numerous similar statements have been collected by authori­ties. Detaining these individuals until their governments collect them is a significant responsi­bility, as the state must provide all daily necessities, including food, drinking water, bathing wa­ter, clothing, and bedding. For food alone, the minimum daily cost per person is approximate­ly K15,000. From 10 December 2024 to 22 November 2025, over K1.33 billion (K1,336,050,000) was spent to cover these expenses. The government is acting in this way to uphold the country’s dig­nity and sovereignty. Authorities have also urged the respective foreign governments to promptly collect their citizens. However, some foreign media have ex­ploited the situation to create disruptions and launch media attacks against the government, requiring vigilance. Meanwhile, the United States has announced the establishment of a Scam Cen­tre Strike Force (SCSF) to protect its citizens from online scams. Additionally, discussions have been held in the US House of Representatives about interven­ing in Myanmar to help combat online fraud and gambling oper­ations. The government views these actions as interference and destabilizing attempts.

 

Meanwhile, a statement and demand were reportedly is­sued by the KNU terrorist group regarding an incident that oc­curred on 25 November in the Phalu (Minletpan) area. The statement accused the group under the name DKBA; here, the terminology KKO/DKBA will be used. In April 2012, the DKBA formed the Kloh Htoo Baw Karen Organization (KKO), with Mahn Robert Zan as chairman and Saw Mo Shay as vice-chairman. At its founding, the statement noted that KKO recognized the Karen National Union (KNU) as its parent organization. Analysis of the militant KNU’s statement indicates that they have detailed insider knowledge of those in­volved in the Phalu (Minletpan) area. This suggests direct KNU involvement. However, a com­parison between the statement and actual developments on the ground shows discrepancies. Satellite imagery shows that the Phalu and Minletpan areas, where the incident occurred, are located just south of KNU’s KK Park. Before 2024, there were no structures in this area. Construc­tion began in 2024. At that time, as noted earlier, KNU and allied militant groups were engaged in clashes across the Kayin State border areas, meaning govern­ment security and administrative forces were not present in the region. In paragraph 2 on page 1 of the KNU statement, it claims that KNU forces cleared the area where DKBA units were sta­tioned and attacking, with at least 230 DKBA personnel disarmed, allowing KNU to take control of the base. In reality, around 2:00 pm on 21 November 2025, some KNU and PDF terrorists arrived in Minletpan village in three ve­hicles. Consider this carefully: if the DKBA/KKO members in Minletpan were genuine adver­saries, would they openly arrive in vehicles like that? Upon reach­ing the gate secured by KKO, they reportedly called Saw Phar Htee, a Major from KKO, asking him to hand over weapons. Saw Phar Htee reportedly told them that he was not responsible for the area and that Saw Kyaw Ko Min (aka) Thakhwathee was in charge, urging them not to arrest any­one. Despite this, the KNU/PDF forces claimed that they were acting on orders from KNU head­quarters and seized 170 weap­ons and some KKO members. During this operation, the KNU/ PDF reportedly contacted KKO leadership, requesting that Saw Kyaw Ko Min be handed over, since he was not found in Minlet­pan. KKO leadership also report­edly communicated with KNU to negotiate the release of the captured KKO members. By 24 November, DKBA/KKO report­edly handed over Saw Kyaw Ko Min to the KNU’s request. On the same day, a public notice stated that any foreign nationals found being transported within the area would be detained. Overall, these events indicate that the Minlet­pan incident was fully known to KNU and that they were directly involved in it.

 

In paragraph 2 of page 2 of the KNU terrorist group’s state­ment, it says that KNU forces continue to operate security in the area due to ongoing attacks Tatmadaw and supporting units, and KNU maintains responsibili­ty for security in the surrounding area. In reality, our security forc­es are conducting operations in KK Park and Shwe Kokko. KNU terrorists have attacked these areas, causing small-scale clash­es. There are two main reasons why KNU issues such misleading statements. First, they want to silence people in Minletpan who know their internal operations. If these people are silenced, clash­es could occur, which they can use as an excuse. Second, they aim to hide their own failures and shift blame onto other groups. Evidence of this is on page 3 of the statement, which says that on 25 November that early in the morn­ing, hundreds of Scam workers, fearing drone attacks, tried to flee the compound. Sounds of fighting and shadows of work­ers clashing inside the buildings were observed. In reality, around 5:30 am on 25 November, foreign nationals held by the KNU in Minletpan illegally protested by burning their clothing to demand they not be detained. The KNU/ PDF reportedly opened fire, causing injuries and potential fatalities among some foreign nationals. This is documented in the photographic evidence we have obtained. At 7:30 pm on the same day, a total of 674 foreign na­tionals – 635 Chinese, 23 Laotians, and 16 Vietnamese – reportedly arrived on the Thai side of the Thaungyin River near Mekokine village, Mae Sot of Thailand. On the same night, about 20 foreign nationals, believed to be involved in local mining operations, were reportedly seized by KNU/PDF along with four vehicles carry­ing about 100 fuel barrels and cash-filled fireproof containers. Further information may still emerge. Based on these events, it is clear what the KNU terror­ists are doing.

 

From the time we first began tracking these online scams and gambling operations, we have been actively conducting inves­tigations and arrests in collabo­ration with neighbouring friendly countries, as well as coordinating with regional countries. Oper­ations are ongoing across the national territory in a system­atic manner. According to in­formation obtained, during the period from 24 to 26 November of this month, operations were carried out near Mongnawng, Kehsi Township, Shan State (South). During these operations, 28 foreign nationals and eight Myanmar nationals engaged in online scam and gambling were apprehended along with buildings, vehicles, related equip­ment, and five small firearms. The Government of Myanmar has never authorized these online scam and gambling businesses or other criminal enterprises. Using Myanmar’s sovereign territory to commit crimes against friendly countries, neighbouring coun­tries, or the international commu­nity is completely unacceptable. Myanmar emphasizes that these online scam gambling operations, which pose threats globally, are being actively eliminated from the country’s land and waters, with measures to completely dismantle their operations at the root.