Prime Minister Abdullah Ahmad Badawi hailed the Israel-Palestinian ceasefire as a chance for lasting peace after years of violence.

"I thank God for the ceasefire because the protracted Middle East conflict and killings have led Palestinians to suffer for a long time," said Abdullah, who is chairman of the 57-member Organisation of the Islamic Conference (OIC).

"The decision for a truce gives a new hope for Palestinians and Israelis to savour the much-awaited peace. I hope the decision to end the four years of violence will be a lasting one," he was quoted as saying by the official Bernama news agency.

"I hope all promises made by both sides will be honoured," he said.

"I believe Palestinians will accept the decision for a truce as it gives a renewed hope to them."

"It gives a new hope to start life afresh and to develop their country, to be established later, whose security and sovereignty will be guaranteed," he said.

Rebuilding process

"I believe Palestinians can now focus their attention on rebuilding their nation so that the country and its people can enjoy progress which they have been deprived of all this while. They have endured prolonged hardship and suffering because of the Middle East crisis," he said.

Peace in the region would create more avenues for Malaysia to forge ties in economic sectors and other viable fields with Palestine, he added.

Israeli Prime Minister Ariel Sharon and Palestinian leader Mahmud Abbas declared a mutual end to hostilities Tuesday after four years of violence that have left more than 4,700 people dead.