Pioneer Weighs Myanmar Plant as Kyat Cuts Costs: Southeast Asia

Myanmar’s kyat, which is weakening at the fastest pace among Asian currencies, is making the former dictatorship look more attractive to companies seeking to shift production.

The currency dropped 1.7 percent in the past month to about 871 per dollar, more than other exchange rates in the region, according to data compiled by Bloomberg, reducing labor costs in a country where manufacturers can employ six workers for the price of one in Guangzhou, China. Myanmar adopted a managed float in April, scrapping a 35-year peg, to rein in a surge in black-market rates that was hurting exporters.