Singapore is considering setting up a special economic zone in India to help boost foreing direct investment from the city state as the two countries on Wednesday agreed to work towards an Asian Economic Community, implement on time the Comprehensive Economic Cooperation Agreement to boost trade, and explore the untapped potential for cooperation in science and technology.

Singapore's senior minister Goh Chok Tong told visiting President A P J Abdul Kalam in Singapore on Wednesday that his country was seriously considering the SEZ in India, secretary (east) Rajiv Sikri told reporters in Singapore.

The SEZ issue had come up during Goh's meeting with Prime Minister Manmohan Singh in New Delhi last month and the subject once again came at Wednesday's meeting where the senior Singapore minister outlined the city state's plan in this regard.