Border closure may hit Thai businesses harder in long term - Panitan

Thailand’s closure of shared border crossings may affect Cambodian workers and entrepreneurs in the short term but, in the long term, Thai businesses may also feel the impact, said Panitan Wattanayagorn, security and international affairs expert.

“In the long run, the closure is likely to have a greater impact on Thai businesses. One reason is that, at some checkpoints, (annual) trade volumes reach as high as Bt300 billion,” said Panitan.

Yesterday, the Thai military ordered a ban on the cross-border movement of people and vehicles at all 16 checkpoints shared with Cambodia, citing threats to national sovereignty posed by Cambodian troops and a surge in cross-border criminality, including call centre and hybrid scams.

The measures are the latest actions to be taken by Thailand, amid already tense bilateral relations with Cambodia.

“Cambodia’s response to the latest cross-border restrictions is expected in the coming days. Thailand should be prepared for that,” he added, as he described such potential new measures as a test of endurance.

Panitan noted that border restrictions are not new, as both countries have previously closed checkpoints during periods of security concern.

While crackdowns on illegal gambling, money laundering and human trafficking may yield short term results, he warned that these illicit operations will eventually relocate.

“To be effective, we must also close off alternative options and step up enforcement. Otherwise, both sides will suffer the consequences,” he added.

Panitan believes that there is still a window of opportunity for both countries to engage in dialogue, and that diplomacy remains key.

“To handle these problems going forward, decisions must be made at the policy level, by figures such as the defence minister,” he said.

He observed that Cambodia appears to be acting with greater unity, while, in Thailand, divisions persist with opposition parties and parts of the private sector, who are still unconvinced by some of the measures being taken.