The Malaysian economy is "well on track " to grow 4%-5% in 2026, and likely to be in the upper range, despite the energy crisis due to the war in the Middle East, with manageable inflation, Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour said on Tuesday.

The economy expanded by 5.2% in 2025, with contained inflation and the ringgit being the region's best-performing currency, through "carefully designed and sequenced reforms", he said at the opening of the two-day Sasana Symposium 2026.

"Looking ahead, the medium-term outlook remains favourable. Growth is expected to stay firm, while inflation remains manageable," he said, adding that the central bank will continue to do what is needed to maintain price stability that supports sustainable economic growth.

BNM's monetary policy remains an important line of defense, and with the current global situation, the central bank's stance remains in line with the domestic growth and inflation outlook, the governor said.