Malaysian economy on track for 4% to 5% growth, central bank governor says

KUALA LUMPUR, July 28 (Reuters) - Malaysia's economy is on track to grow by between 4% and 5% this year despite the global energy supply shock from the Middle East conflict, its central bank governor said at a forum on Tuesday. 

• Economic growth will likely be towards the upper end of the forecast range as inflation remains manageable, Bank Negara Malaysia Governor Abdul Rasheed Ghaffour said.

• The central bank will continue to play its part in maintaining price stability as global uncertainties persist and energy prices remain high, he said.

• BNM's policy stance remains in line with the domestic growth and inflation outlook, Abdul Rasheed added.

• BNM left its key interest rate unchanged at 2.75% for the sixth straight policy meeting in July.

• Headline and core inflation averaged 1.7% and 2.1%, respectively, over the first five months of the year.

• Although energy prices have soared, the government has maintained subsidies for fuel and diesel.

• The government may spend up to 40 billion ringgit ($9.8 billion) on fuel subsidies this year, more than double its initial budget allocation, if energy prices remain elevated.

($1 = 4.0830 ringgit)

(Reporting by Danial Azhar; Editing by John Mair)