"We have expressed our interest at the official level,'' he said, in reply to questions on FTAs Singapore is pursuing.

Yeo said he meant to broach the subject personally with Chinese counterpart Lu Fuyuan, at last month's Asia-Pacific Economic Cooperation meeting in Bangkok. But Lu could not attend for health reasons.

Yeo did not say what response there had been from China, Singapore's fourth biggest trade partner in 2002, excluding Hong Kong, with $28 billion of trade.

Following the historic FTA with the United States this year, sealing an agreement with Beijing would be another significant step for Singapore.

While Asean is pursuing an FTA with China, analysts say there is nothing to prevent individual member-countries seeking bilateral deals.

In any case, as Yeo put it yesterday, all of Singapore's FTAs ""are intended to bring in the rest of Asean eventually''.

He said an FTA with China should go beyond removing tariffs to include the liberalisation of services.

It should also build on a four-point proposal the countries agreed on last year, for Singapore to work with Chinese firms in their efforts to go global; boost cooperation in high-tech areas; strengthen cooperation in human resource training and development; and work to develop China's western regions.

Trade groups here yesterday welcomed the prospect of a pact with China.

Singapore-China Business Association president Lo Koh hoped it would allow investment rules to be relaxed, while Singapore Chinese Chamber of Commerce and Industry secretary-general Lim Sah Soon looked forward to tighter enforcement of contracts and a dispute-settlement mechanism.

The American Chamber of Commerce also saluted Singapore for taking "a leadership role'' in promoting freer trade.

As for China's likely response to the approach, East Asian Institute research director John Wong thinks it will be positive, as "China is increasingly operating as a locomotive for regional economic growth''.