Located in the city’s Marina central business district, the S$200m Singapore Flyer will be a 150m diameter observation wheel, carrying 32 air-conditioned capsules with a capacity of 25 passengers each.

When it opens in November 2005, the panoramic view from the top of the wheel will take in not only Singapore but also parts of Malaysia and Indonesia. At 170m, it will be about 35m higher than the London Eye, currently the tallest such structure in the world.

Lim Neo Chian, deputy chair and chief executive of the Singapore Tourism Board, said the new attraction was expected to draw more than 2.5 million visitors in its first year. He added: "The Singapore Flyer will inject a new wave of excitement into Singapore’s tourism industry and is part of our long-term goal to further propel the country’s position as the leading tourism hub for Asia."

The wheel will be constructed above a 3-storey terminal building – consisting of 20 retail and entertainment outlets – which will feature travelator links to a new MRT station, waterfront taxis at the Marina Bay jetty, a bus terminal and garage parking.

Architect of the terminal building is Kisho Kurokawa of Japan and the developer and company responsible for the Flyer concept is Melchers Project Management, a subsidiary of international logistics and engineering services company, C.Melchers GmbH.

Patrick MacMahon, general manager of Melchers Project Management, said: "There are tremendous challenges when producing a development of this kind. However, with the world-class team we have chosen and the innovative tools at their disposal, we can create an entirely new class of attraction."

The wheel’s impressive dimensions may not mean it keeps the world record for long. China has already announced plans to build a 200m diameter wheel in Shanghai, also scheduled to open in 2005.