Prime Minister Abdullah Ahmad Badawi voiced hope today that the election of new Palestinian leader Mahmud Abbas would lead to lasting peace in the Middle East.

"I'm very happy that the election in Palestine has taken place and a new leader has been elected," Abdullah told a news conference.

"We really hope that he will succeed in bringing peace to Palestine and Israel, and that he will create an environment where understanding and mutual respect exist between the two," he said.

"Mahmud Abbas faces a huge challenge. I believe he will be able to forge good ties that will help him bring peace to Palestine and in their relationship with Israel," he said.

Asked if the 57-member Organisation of Islamic Conference (OIC), of which Malaysia is current chairman, accepted the election of Abbas, he said: "I trust all OIC member countries will accept his election."

Abbas won the Palestinian presidential election with more than 62 percent of the votes cast, according to official results on Monday.

His victory was widely seen as an opportunity to make a fresh start in the Middle East peace process.