KUALA LUMPUR - SINGAPORE Airlines, the world's leading carrier by market value, is only keen on acquisitions in China in the longer-term, when the regulatory environment is proper, its CEO said on Tuesday.

Asked if the carrier was looking at acquisitions in China, Chew Choon Seng told Reuters: 'Not at this point in time, but in the longer-term, yes.' 'The regulatory environment has to be correct. At the moment it is not.' Mr Chew was speaking on the sidelines of an aviation meeting in Kuala Lumpur.

On Monday, Mr Chew singled out India and China as markets the Singapore flag carrier was most keen on.

Previously, Singapore Airlines, along with majority shareholder Temasek, offered US$920 million ($1.34 billion) for a combined 24 per cent stake in China Eastern, but the Chinese carrier's shareholders rejected the bid, which also faced strong opposition from rival Air China .

Asked if Singapore Airlines was looking at China Eastern again, Mr Chew said: 'We are talking (about China) in a generic sense.' Shares in both China Eastern Airlines and smaller Shanghai Airlines were suspended this week after media said the two loss-making carriers were close to a merger deal.

Shanghai Air Vice-president Feng Xin told the South China Morning Post the two Shanghai-based carriers had received instructions from the government to consolidate their assets.

According to UBS, Singapore Airlines had net cash of around S$2.7 billion ($1.85 billion) at end-March, putting the carrier in a stronger position relative to rivals also hit by falling passenger and cargo loads.