Japanese researchers have calculated that Malaysia could make US$1.589 billion yearly from the Kuala Lumpur-Singapore High-Speed Rail (HSR) project in 2030, more than double the US$641 million per year Singapore would earn from the project.

The study by researchers from Japan's Institute of Developing Economies (IDE) was based on figures derived from using a computer simulation model developed by the institute to assess the HSR's economic impact.

The US$1.589 billion figure was the best of five possible scenarios, in which the HSR consists of domestic stops from Kuala Lumpur to Iskandar, Johor; a shuttle service from Iskandar to Singapore; and an express service from Kuala Lumpur direct to Singapore.

The scenario also assumes a 50 percent reduction in non-trade barriers for the service sector.

Under this scenario, Malaysia stands to make US$1.9 billion from the services sector.

However, other sectors such as electronics and manufacturing are negatively impacted by the HSR, bringing the total economic benefits down to US$1.589 billion.

The next best scenario is for the HSR to go directly from Kuala Lumpur to Singapore, with one stop in Iskandar. Under this setup, Malaysia will make US$1 billion a year, while Singapore earns US$88 million.

The findings were published by Singapore's Iseas-Yusof Ishak Institute, where one of the researchers, Hayakawa Kazunobo, is a visiting fellow.

The two others who co-wrote the paper are IDE director Kamugai Satoru, and overseas fellow Isono Ikomu.

The HSR is currently on hold as Putrajaya seeks to cut costs of mega projects initiated by the previous BN government.

The Pakatan Harapan government claims the HSR would cost RM110 billion, instead of RM55 billion that was initially estimated.

Economic Affairs Minister Azmin Ali is expected to discuss the project further with Singapore this month.