The proposal, which he outlined at a meeting in the provincial capital Shenyang yesterday, was immediately welcomed by a senior official of the north-eastern province.

Such a tie-up would be the latest in a string of close business and investment links between the Republic and the province since the high-profile Singapore-Liaoning Economic and Trade Council (SLETC) was set up in 2003.

Changi Airports International (CAI) may invest directly in such a project, Mr Tharman said while addressing officials and businessmen at the latest SLETC meeting in Shenyang.

The firm, a wholly owned unit of statutory board, the Civil Aviation Authority of Singapore (CAAS), manages and invests in airports around the world.

'Shenyang can be the air hub for not just north-east China, but also North Asia and Russia,' Mr Tharman told the audience that included Liaoning's top official, party secretary Zhang Wenyue.

It was the final time that Mr Tharman co-chaired the council, alongside Mr Zhang, with the role now handed over to Acting Manpower Minister Gan Kim Yong.

Mr Zhang - who has also passed on responsibilities to governor Chen Zhenggao - said Shenyang has similar plans, and would welcome any Singapore participation.

CAI chief executive Chow Kok Fong said on the sidelines of the meeting that it was considering options that range from equity investment to simply helping Shenyang plan or manage its airport.

'Both sides have expressed interest over the past few months,' Mr Chow told the media.

'It is an interesting development as the whole of Liaoning is supported by a strong economy.'

Located in the strategic Bohai region, near Japan and Korea, Liaoning saw its economic output hit the one trillion yuan (S$199 billion) mark for the first time last year.

Under China's latest five-year plan, the province will focus on developing its coastal economic zones and modern service industries.

Shenyang is about an hour's flying time from Beijing, 1-1/2 hours from Seoul, three hours from Tokyo and four hours from Hong Kong.

Mr Tharman told reporters that Liaoning has put aside its 'heavy-industry' and 'old-style' legacy, and 'transformed remarkably' into an area with fresh opportunities for Singapore businessmen in sectors such as maritime, education and the environment.

'China is a vast country. We can't be everywhere, but cities in Liaoning are among the areas... that we can focus on, and deepen our engagements that will pay out over the long term,' he said.

Singapore is Liaoning's fifth-largest trading partner. Bilateral trade more than doubled to US$2.85 billion (S$3.9 billion) last year, from US$1.39 billion in 2006.

It is also the province's sixth-largest investor, with cumulative investments also doubling, to US$1.64 billion, since the start of the SLETC.

Seven projects involving Singapore companies in Liaoning were also inked yesterday.

These included conglomerate Sembcorp Industries' 330 million yuan pact to buy and run three water plants in a Shenyang joint venture.

Others were Rotary Engineering's petrochemical works on Changxing Island, Dayen Environmental's wastewater treatment project in Jinzhou, SPA (Dalian) Property Development's real estate deal in Dalian and Surbana's township investment in Shenyang.

In addition, EtonHouse International will develop two schools, including a joint venture with property group Brothers Holdings.

vincec@sph.com.sg

STRONG BACKING

'It is an interesting development as the whole of Liaoning is supported by a strong economy.'

CAI CHIEF EXECUTIVE CHOW KOK FONG, on the proposal

AIMING HIGH

'Shenyang can be the air hub for not just north-east China, but also North Asia and Russia.'

MR THARMAN, on the proposal to transform Liaoning, whose provincial capital is Shenyang, into a major air hub