Economic Impacts of High-Speed Rail between Kuala Lumpur and Singapore: An Application of IDE-GSM
This paper examines the potential economic impacts of the Kuala Lumpur (KL) – Singapore High-speed railway (HSR) using a CGE model based on spatial economics, called IDE-GSM. The simulations covered three different scenarios: (1) Singapore–KL non-stop express service, (2) Johor–KL local service, and (3) Singapore–Johor shuttle service. Simulations were also performed to compare the economic impacts of the project on Singapore and the thirteen states of Malaysia. O ur simulation analysis revealed that the economic impacts of HSR for Malaysia and Singapore in the best policy mix are USD 1.589 billion and USD 641 million a year for 2030, respectively.
Keywords: Simulation, new economic geography, Singapore, Malaysia
JEL classification: R12, R13, R42
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.