Malaysia’s 2026 growth seen at 4-5% despite energy shock
Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour said Malaysia’s economy is set to expand by 4-5% next year, likely at the upper end of that range, even after an energy supply shock.
Source: The Star · July 31, 2026 at 3:02 AM · AI-assisted report
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KUALA LUMPUR, 31 JULY 2026 —
Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour said Malaysia’s economy is set to expand by 4-5% next year, likely at the upper end of that range, even after an energy supply shock.
Market Impact
Abdul Rasheed, speaking at the Sasana Symposium 2026, said the forecast band remained intact despite the disruption. He added that inflation would stay manageable, citing last year’s 5.2% GDP growth and the ringgit’s position as the region’s best-performing currency in 2025.
“The country’s economic fundamentals, reform agenda and commitment to sound economic management have enabled the government to respond when shocks occur,” he said. “As the central bank, BNM has preserved macroeconomic stability so that reforms can take hold.”
Themed “Reforms for Resilience: Navigating Uncertainties,” the two-day event also covers wages, cost of living, investment, energy security, Islamic finance and private healthcare costs. Abdul Rasheed said the financial system must evolve toward values-driven, impact-focused and responsible practices as Malaysia enters its next development phase.
BNM’s upcoming Financial Sector Blueprint 2027-2030 will be guided by three goals: finance for a more resilient society, finance for a more prosperous society, and a future-proof financial system. Abdul Rasheed stressed that future growth must be sustainable, highlighting Malaysia’s status as one of the world’s 17 most biodiverse nations.
On fiscal policy, he said sustainable public finances underpin education, healthcare, infrastructure, climate resilience and social protection. “Sustainable public finances sit at the heart of almost every national policy,” he said. “Better education, stronger healthcare, modern infrastructure, climate resilience and effective social protection all depend on the government’s fiscal capacity.”
Looking ahead, he said Malaysia’s medium-term outlook remains favourable, with growth expected to stay firm and inflation manageable.