Saturday, November 29, 2008

Auto floating mechanism for Petrol Pricing



The government recently proposed to either set a minimum floor price or fix a managed float system for the petrol pump pricing. We recognizes the interest of the public and has always taken the position that the economic sectors should be liberalized and auto floating mechanism should be implemented in the petrol pump pricing.

Acknowledging the fact that world crude oil prices has been significantly drop from US$120 in July to US$50 in November, we urge the government to re-examine the economic policies to adapt to the huge changes that affects the citizens daily life.
An auto floating mechanism in petrol pump pricing will provide an optimum price for motorists and the government will be able to monitor the mechanism in an open and transparent manner.

We also urge the government to continue in giving out the 30 cents petrol subsidies per litre as promised. The chain reaction from the previous petrol hike is still there and the inflation is still stands high at 7% when compared to 2% in 2006. The interest of the lower and medium income group should be taken care of.

We are objecting the floor price fixing for petrol pump as it does not promote transparency and consistency in government policies. The economy prosperity should be enjoyed by all citizens.

Wednesday, November 26, 2008

SEMINAR on Impact of the Global Financial Crisis: What Lies Ahead for Asia



Speakers:

Dr Michael Lim Mah-Hui
Senior Fellow,
Asian Public Intellectuals Program
Nippon Foundation

Mr Manu Bhaskaran
Director and CEO,
Centennial Asia Advisors, Singapore

Date:


Friday, 5 December 2008

Time:
3.00 pm – 5.00 pm

Venue:


ISEAS Seminar Room II

About the Speakers

Dr Michael Lim Mah-Hui is a Senior Fellow in the Asian Public Intellectuals Program of the Nippon Foundation. He taught political economy and sociology in various U.S. and Malaysian universities before he joined international banking. He has over twenty years experience as an investment, commercial, and development banker at Chemical Bank (now JP Morgan Chase), Credit Suisse First Boston, Deutsche Bank, Standard Chartered Bank, as well as Asian Development Bank. He has written extensively, and delivered public lectures in various regional institutions and universities on the present global financial crisis and its impact on Asia. Dr Lim writes extensively for newspapers and journals in Malaysia, Singapore, Indonesia, Philippines, Thailand, Australia, India and the United States. He is also active in community and civil society groups. Dr Lim received his B.A. (Honors) in Economics from the University of Malaya, a Masters in International Affairs, a Masters in Sociology, and a PhD in Development Studies from the University of Pittsburgh.

Mr Manu Bhaskaran is currently Director and CEO of Centennial Asia Advisors, Singapore. Mr Bhaskaran has over twenty years of experience in analyzing political and economic trends in Asia. He has worked for the Singapore government on issues of regional security, and has also subsequently worked with the SG Investment Bank (an international investment banking division of Societe General), as Chief Economist and Chief Strategist. Mr Bhaskaran writes extensively for the Far Eastern Economic review, the Nikkei, and other business weeklies. He is also a frequent speaker at the World Economic Forum. He also continues to be involved in several government initiatives; he is a Council Member of the Singapore Institute of International Affairs, and serves on the board of a listed Singapore government-owned company. He has also served as a Visiting Fellow at the Institute of Policy Studies. Mr Bhaskaran has a Masters degree in Public Administration from the John F Kennedy School of Government at Harvard University and a Bachelors degree in economics from Cambridge University. In addition to these, he is a qualified Chartered Financial Analyst.

Abstract

As the global economy still reels under the effects of one of the most serious financial crisis and economic downturns in decades, Asia ponders the particular effects the crisis is likely to have on the region’s economies. The US and EU have already made massive financial interventions in their domestic financial systems; and heads of the G20 discuss major reforms and solutions to the global financial system in their meeting in November. Simultaneously, there have been calls for urgent and coordinated action among Asian economies to protect their economic growth in the face of the economic downturn in the US and EU. While Asia appears to be cushioned against immediate effects of the financial turmoil, there are several concerns about the potential long-term effects of the crisis on the region’s growth. Have the Asian economies learned valuable lessons from the severe financial crisis that hit the region a decade ago? Will Asia play a prominent role in rejuvenating the global financial system post-crisis? These are some of the questions on everybody’s minds as they try to understand the implications of the global financial crisis from a regional perspective.

Dr Michael Lim Mah-Hui and Mr Manu Bhaskaran will discuss some of these important issues in depth as they present their views on the global financial crisis from the regional perspective of Asia.

ISEAS cordially invites you to the Seminar.

Thursday, November 20, 2008

Bank Negara is printing more $$$ now...



Governor of Bank Negara said that the decline in foreign reserves for Oct and Dec 08 is mainly due to a reversal of short-term capital flows. The forex exchange between US$ and RM decline to US$1.00=RM3.60 now.

Accodring to source from Ganesh (http://sahathevan.blogspot.com/),

1. Between 15 May 2008 and 31 October 2008, Bank Negara’s total assets in Malaysian Ringgit terms fell 26% from RM 506,986,188,441 to RM 374,372,661,598.

2. Reserves of foreign exchange and gold alone fell 13.6% , from RM 399 919 106 509 to RM 345 549 644 622. This equated in US dollar terms to a fall of 20%, from USD 125.1 billion to USD 100.2 billion.

3. Bank Negara appears to have financed this fall by simply printing more Ringgit.
Over the same period from 15 May 2008 to 31 October 2008 currency in circulation has increased 9.3%, from RM 42 614 989 793 to RM 46 595 122 319.

4.However this might not be the whole story.Federal Govt deposits have increased 130%, from RM 9,434,186,821 to RM 21,622,286,904. This increase raises the question of where the deposits came from. It is possible that these may well be “new” Federal Government funds, recently minted and issued by Bank Negara.

Conclusion:

All this would mean a further decline in the value of the Ringgit,and higher inflation as more money circulates in the economy.

Saturday, November 15, 2008

Rules on manufacturing licence relaxed to encourage investments in Malaysia



Yes, Malaysia is liberalizing the manufacturing sectors to attract FDIs to overcome the recession, which is similar to the 1997 financial crisis.

We will continue our work to lobby for a more liberal economic policy in Malaysia.


The automatic issuance of manufacturing licences within two days will be made possible as they will now be issued by the Malaysian Industrial Development Authority (Mida), said International Trade and Industry Minister Tan Sri Muhyiddin Yassin.

This was one of several measures he said the Government would undertake to help domestic trade and industry players counter the impact of the global economic slowdown.

An International Trade and Industry Ministry (Miti) source said the ministry had also asked Mida to come up with a simpler form to apply for the licence, which will require only basic information for automatic approval.

Except for certain categories of activities, licence applications will no longer require approval by the Miti secretary-general.

However, activities related to security, health, environment and religion will still need to go through the normal vetting and approval process by the licensing officer.

Firms have said that under the old system, licence application could take up to a month.

Under the Industrial Coordination Act, a manufacturing licence is required for projects by companies with a minimum shareholders’ fund of RM2.5mil or employing 75 full-time employees. This requirement still remains.

Earlier measures to liberalise the licensing process includes doing away with renewal. The RM50 licence fee was also abolished on June 1. Muhyiddin also said he would announce more measures after meeting industry players in other specific sectors, as well as based on the future economic scenario.

Meanwhile, MP for Alor Gajah Datuk Seri Dr Fong Chan Onn, who is a former dean of Universiti Malaya’s economic faculty, said: “If the automatic issuance of licence also deals with approval and usage of land, staff employment, Immigration approval and various other past requirements, it will encourage more investors to do business in Malaysia.”

Thursday, November 13, 2008

Current Economic Development Analysis (Malaysia)




List of Incentives

1st Wave (BNM)

*All currency deposits with financial institutions will be fully guaranteed by the Government until December 2010.

2nd Wave
*RM 5bil fund injection to ValueCap Sdn Bhd.
*Mismanagement of GLCs (Silterra ,ValueCap, EPF) and government procurement.

3rd Wave
*Economic Stimulus Plan tabled in Parliament (Nov 4). The key measures include:  
(i) a RM7b new Government spending package,
(ii) Lower EPF contributions of 8% for two years, and
(iii) liberalising building material industries, as well as foreign investment in commercial properties and the services sector.


Attacks by Pakatan Rakyat

1st Wave (BNM)

*Bank Negara Malaysia is estimated to have spent US$12 billion during September to defend the ringgit, said Moody’s Economy.com.
*How to justify the forex defence (RM42.4 billion) and the Ringgit depreciation from RM 3.25 to RM3.57 now?

2nd Wave (GLCs -ValueCap)
*Owned jointly by Khazanah, PNB and KWAP and at the same time provided a bond (est value RM10bil) to ValueCap.
*RM5bil injection into ValueCap Sdn Bhd is in fact a “rescue package” to repay its RM5.1bil debt (Bond) due in February 2009.
*MOF owe an explanation to the public on mismanagement of GLCs (BII Indonesia take-over, Silterra est. lost of RM 1bil and Eurocopter procurement).
*How to justify the RM5bil loan from KWSP and is there transparency?

3rd Wave (ESP)

*MPs blurred by the Budget 2009 winding up speech and Economic Stimulus Plan. (Is the ESP in the budget? The revised figures in the speech?)
*The economic figures was revised and different from Budget 2008, therefore, Najib need to represent the budget again (not following procedure and no details on how the figures derive from).
*Revised economic figures shows high budget deficit at -4.8% from previously -3.6%, highest among ASEAN. (BN deficit is RM28.45bil, PR deficit is RM22.10bil)
*Revised figures shows that the projected revenue decrease by RM 8bil only as it does not tally with the current commodity price from expected. (Crude Oil expected at US$120/bbl but now drop to US$65/bbl)
*The proposed RM7bil is a “fantasy”. (Government expect the RM7bil will come from fuel subsidy savings next year).
*PR is ensuring “quality deficit” be achieved, not injecting funds into speculative activities.
*Status of economic corridors is unknown.


BN Counter Attacks

1st Wave (BNM)

*No response from Government.
*BNM says there is ample liquidity and there has been normal functioning of the financial markets.


2nd Wave (GLCs)
*No response on GLCs mismanagement (ValueCap, Silterra).

Finance Minister 2 (Tan Sri Noor Mohd. Yakcop)
*EPF will not take up equity stake in ValueCap.
*The RM5bil is not for debt repayment.
*ValueCap shareholders may extend the bond obligation repayment period.
*No reasons as to why EPF extending the loan to ValueCap but he assured that the loan was guaranteed by the government.

3rd Wave (ESP)

Finance Minister (Dato’ Sri Najib Razak)

*The ESP is not a part of the budget. ESP is aimed at sustaining the economy growth.
More liberal policies will be adopted. Open tender system will be implemented.
*Structural change in the government to encourage competitiveness and encourage private sector investment.
*More measures will be taken soon to stimulate the economy growth (Economic Council).

Finance Minister 2 (Tan Sri Noor Mohd. Yakcop)
*In the StarBiz Interview, he explained that the government will spend wisely and efficiently with Project Management Unit (PMU).
*Implementing open tender system and PMU to reduce bureaucracy.
*No intention to cut back on the economic corridors (Pak Lah misquoted).
*GLCs will come up with skills training programmes to tackle unemployment.
*EPF contribution reduction will go on. (refusal to reduction will need to fill in a notification form).

PM’s Dept Minister (Tan Sri Amirsham)
*Government will liberalize the economy and financial market.
*RM6bil. under RMK9 will be channeled to the economic corridors.
*Government will increase the economic pie for Malaysian.
*BII take over is a strategic long term investment.
*EPU is monitoring the global economic situation.
*Budget deficit is unavoidable as government increasing spending.

MCA’s Mei Fun
*Open tender system will increase the nation’s competitiveness level.

Wednesday, November 12, 2008

Petronas Position in Government Financial System




Facts about Petronas:

1. Biggest contributor to the government's income.
2. Petronas contributed RM62.8bil or 44% of the government's overall income in 2008.
3. Petronas shares will not be listed in Bursa Malaysia to protect the country's interest.
4. There are 4 listed companies under the Petronas, as below:
(a) Petronas dagangan Berhad.
(b) Petronas Gas Berhad.
(c) MISC Berhad.
(d) KLCC Property Holdings bhd.

Speculated unknown facts about Petronas:

1. Has been used by the government to bailout projects since Tun M era.
2. Petronas projects and license in Malaysia must be dominant with Malay, which means u must have 51% Bumi equity to qualify for projects and license.
3. Force the existing oil and gas related companies to restructure their equity and employment to reflects the racial distribution.
4. Petronas vendor programme for petrol station is only applicable for Bumiputera.
5. Petronas's employment are dominated by Bumiputera.
6. Petronas's account is only given to the Prime Minister (nobody can get details from it).

Relaxation of NEP (Series 2)




Government Procurement System.

a.Margin of Preference (MOP).

Background:

•The government procurement policy was seen as being too conservative.

Arguments:
•The above procurement process is selective and non-transparent.
•The procurement system is not implemented in a transparent manner.
•Greater relaxation in our procurement policies is needed in order to enhance the quality and price competitiveness of government procurement.

Suggestions:
•A committee must be setup to preserve the transparency and integrity in awarding the government tenders for projects and services.
•Preferential treatment to Bumiputra companies must be done in a transparent manner.

b.Direct negotiation (Direct NEGO) in Government Procurement.

Background:
•The direct negotiation approach should only be conducted when the number of people who are able to implement a particular project is limited.
•Procurement by direct negotiation requires special approval from the Treasury of Malaysia.

Arguments:

•Financial irregularities will arise from the poor monitoring of projects as it does not goes through open tender system.
•There is no transparent system in the direct negotiation approach.
•The officers are conducting the direct negotiations approach even there are a lot of people able to implement the project.

Suggestions:

•Abolish the direct negotiation approach and replace it with open tender system with MOP.

c.Class F contractor.

Background:


•There are approximately 35,253 Class F registered contractors (Bumiputera only). They are the smallest fry of the contractor’s world, dependent on government contracts that range from RM5,000 to RM200,000 project.

Arguments:

•These Class F contractors had been "too government-centric”. They have become too reliant on the Government for contracts.
•The Class F concessions handed out are usually a political patronage of UMNO.

Suggestions:


•Abolish the class F contractor system and replace it with an open tender with MOP system for all SMEs.

Monday, November 10, 2008

Proposed relaxation of NEP (Series 1)




1.Foreign Investment Committee (FIC) Guidelines.:

Background
•This has been the overriding policy guiding all Bumiputera equity arguments and justification since 1970’s.
•FIC guidelines regulate and approve the foreign investments in Malaysia.
•The guidelines ruled that all foreign investment in Malaysia is subjected to the Bumiputra equity requirement (30%).

Arguments:
•Has not addressed the problem of poverty and income inequality.
•We need more liberal investment policies as FDIs outflows exceed inflows. (In 2007, Malaysia’s FDIs outflows at RM38bil and inflows at RM29bil.)
•Economic liberalization will help to reduce bureaucracies and cost of doing business.

Suggestions:
•Abolish the FIC guidelines and replace it with a more liberal investment policy to attract FDIs.
•Enhance the competitiveness of local businesses with training and new technology adoption to compete with foreign companies.

2.Industrial Coordination Act 1975 (ICA).

Background:
•To regulate the licensing in the manufacturing sectors in the 1970’s and 80’s during the Industrialization Plan by Tun Dr. Mahathir.
•The ICA requires manufacturing companies with shareholders' funds of RM2.5 million and above or engaging 75 or more full-time paid employees to apply for a manufacturing licence for approval by the Ministry of International Trade and Industry (MITI).

Arguments:
•The approval of manufacturing license is not transparent (case by case basis).
•Foreign investors will not invest in the country if their licenses are subjected to changes from time to time.

Suggestions:
•Abolish outdated and irrelevant restriction in the act.
•Abolish the Industrial Coordination Act.

Friday, November 07, 2008

Employees Provi­dent Fund (EPF) Sucking your blood less now



Employees Provi­dent Fund (EPF) members will be able to benefit from the three percentage point reduction of their monthly contribution rate from January 2009.

In a statement yesterday, EPF said the reduction of the employees’ contribution from 11% to 8% would be made automatically for the ease of members and to facilitate implementation measures.

“This arrangement will be implemented until the December 2010 wage.” However, members who wish to maintain their 11% contribution rate can still do so by filling up Form KWSP 17A (AHL) and handing it to their employers for submission to EPF.

Finance Minister and Deputy Prime Minister Datuk Seri Najib Tun Razak announced recently that members could reduce their monthly contributions from 11% to 8% to give them more disposable income. The announcement was part of a stimulus package to help boost economic growth.

“The decision to reduce members’ statutory contribution rate was taken twice before in 2001 and in 2003 as part of economic stimulus packages,” said Nik Affendi.

EPF would be issuing a new monthly contributions schedule accordingly, he said. “Members and employers may obtain the new schedule and Form KWSP 17A (AHL) from all EPF branches or download them from our website at www.kwsp.gov.my from Dec 1 onwards,” he added.

View Points of Chinese
1. A waste of time to fill up form.
2. 3% is a small money.. don't bother with it.
3. Stupid policy as it does not help to boost economy.

View Points of Malay and Low Income Group
1. It will help to increase the disposable income, means more $$ in your pocket (although its little, but means a lot).
2. The employer contribution still the same, means u don't lose anything.
3. It was expected a big sum of $$ will go to local market consumption (boost local business operation).

Thursday, November 06, 2008

04-11-2008: BNM spent US$12b to defend ringgit in Sept, says Moody’s






Beware, your $$$ is going into the drain now.....

Bank Negara Malaysia (BNM) is estimated to have spent US$12 billion (RM42.4 billion) during September to defend the ringgit, said Moody’s Economy.com.

Moody’s said the ringgit was among Asia-Pacific currencies that had depreciated despite current account surpluses, the others being the Singapore dollar and Philippine peso.

“Sound current accounts may have created a bottom for these currencies and they have ‘only’ depreciated by 5% to 10% since June,” Moody’s Economy.com economist Tine Olsen said in her report yesterday.

She said other currencies in the middle group had fallen because of deleveraging, while those experiencing the biggest depreciation, including South Korea, Indonesia and India, also struggled with current account deficits.

Olsen said Asia-Pacific currency markets had been driven recently by the liquidity squeeze and by current accounts as risk-averse investors moved funds from high-risk markets to safe havens to avoid losses, and also to preserve liquidity.

These include the unwinding of carry trades — the repatriation of funds from high-interest countries to repay loans taken out in low-interest countries.

“As the liquidity crisis eases, investors turn their attention to economic fundamentals to determine the value of national currencies,” Olsen said.

She said the global economic slowdown had encouraged investors to avoid countries with deteriorating current accounts, as they feared export weakness would put downward pressure on currencies.

Olsen said running against the trend of currency markets was the Japanese yen, which is a global reserve currency. The yen has appreciated against the US dollar, but all other major regional currencies have fallen against the US dollar since June.

She said the Australian and New Zealand dollars had been battered in the markets since June, seeing depreciation of 35% and 27%, respectively.

“Monetary policy rates have come down and investors have deleveraged, making the two currencies less attractive than they were earlier.

“At the other end of the scale is the Japanese yen, with an appreciation of 10% due to its status as a safe haven and its role in the carry trade,” she said, adding that as uncertainty increased, investors commonly moved funds out of high-interest countries and paid off their low-interest yen-dominated loans.

Olsen said the forces behind exchange rate movements varied greatly, as were the responses by governments.

“An economic slowdown and looser monetary policy in New Zealand and Australia have reduced the carry trade: borrowing in a low-interest country such as Japan and investing in Australia and New Zealand is no longer as profitable.

“This was amplified by the liquidity squeeze. Interest rates have come down from 7.25% to 6% in Australia and from 8.25% to 6.5% in New Zealand. Investors may have also been discouraged by the current account deficits in these two countries,” she said.

Olsen said if investors began to worry about Australia’s current account deficit, the Australian dollar would be severely challenged in the near term.

She said the Reserve Bank of Australia (RBA) intervened three times in the Aussie market, purchasing the domestic currency two Fridays ago and again last Monday and Tuesday. It has been more than a year since the RBA intervened in currency markets.

Olsen said in Indonesia, by contrast, the central bank was intervening often as it was trying to keep the rupiah steady after the currency reached the psychologically important level of 10,000 rupiah per US dollar.

“With an inflation target of 4% to 5% and annual inflation at 13.6% in July on a year-ago basis, it appears Indonesia has abandoned its inflation target and now focuses on exchange rate stabilisation,” she said.

Olsen said the region’s most troubled currency was the Korean won as doubts about the state of the Korean current account and South Korean importers’ high exposure to the US dollar had prompted traders to stage what at times looked like a run on the currency.

“The government’s repeated assurance that its foreign reserves are healthy has not stopped the exit, and the won has depreciated more than 40% since the end of June.

“The drop appeared to have been halted this week (last week) by a smaller-than-expected current account deficit for September and a currency swap line with the US Federal Reserve. On Thursday, the Korean won jumped 14% as a result,” she said.

Olsen said on a crude scale, the yen’s 10% appreciation matched the depreciation of smaller currencies with no underlying current account problems.

“An exchange rate movement of 10% may therefore be assigned to increased uncertainty and the liquidity squeeze in global markets, and has happened regardless of the sign of the current account.

“How much of the remaining part of exchange rate movements can be assigned to the unwinding of carry trade and worries about the current account is harder to quantify,” she said.

Olsen said the depreciation of Australian and New Zealand currencies was mainly driven by carry-trade reversal, whereas the Korean and Indian currencies had been brought down by speculation about their current accounts.

“As credit markets thaw, currencies may be expected to reverse the 10% move, which was based on the liquidity squeeze.

“Currencies with underlying current account deficits face turbulence in the near future, as a global slowdown puts pressure on the trade balance. Finally, high-interest currencies may be further challenged by looser monetary policy,” she said.

Wednesday, November 05, 2008

Economic Stimulus Package for Malaysia (2008)




Better “something” than “nothing”…

Following the footsteps of several major and regional economies, the Government unveiled an economic stimulus package (ESP)on Nov 4, 2008. The key measures include:
(i) a RM7b new Government spending package,
(ii) allowing workers to opt for lower EPF contributions of 8% for two years, and
(iii) liberalising building material industries, as well as foreign investment in commercial properties and the services sector.

These measures add to the long list of measures that the Government had put in place, first to help the economy – especially consumers – cope with inflationary pressures, and now to deal with recessionary pressures. Over the past three months, steps already announced included a string of reductions in fuel (petrol and diesel) prices to reflect falling crude oil prices, 100% guarantees on deposits, and an additional RM5b to Value Cap.

The Government also revised its 2009 key macroeconomic forecasts, for lower real GDP growth and higher budget deficits. Our 2009 growth forecast is “stable” but under “negative watch” in view of the need to continuously assess the:
(i) effectiveness and execution of the ESP,
(ii) performance of the global economy, and
(iii) developments on commodity prices.

Perak Sultan warns against extreme political actions



All extreme and excessive political actions must cease immediately for the sake of the country's well-being, Sultan of Perak Sultan Azlan Shah said.

The country’s peace must not be sacrificed because of certain leaders’ political ambitions.

"The interest of the people who voted for the government needs to be given priority," he said.

He said this after receiving a memorandum from Gagasan Melayu Perak president Datuk Seri Dr Mohd Helmi Ismail, who pledged their loyalty to the Sultan at the Istana Iskandariah on Wednesday.

Sultan Azlan said although Malaysia was a multi-racial country, the country was still based on the history, political evolution and spirit of nationalism of the Malays.

He stressed that the Malays needed an assurance to ensure their status as natives as enshrined in the Federal Constitution was not threatened.

He also said that the rights of other races are protected and acknowledged under the Constitution.

"It is the understanding and agreement under the social contract that enables the country to be successful, harmonious and stable," he said.

President Barack Obama for USA





Remarks of President-Elect Barack Obama-as prepared for delivery
Election Night
Tuesday, November 4th, 2008
Chicago, Illinois


If there is anyone out there who still doubts that America is a place where all things are possible; who still wonders if the dream of our founders is alive in our time; who still questions the power of our democracy, tonight is your answer.

It's the answer told by lines that stretched around schools and churches in numbers this nation has never seen; by people who waited three hours and four hours, many for the very first time in their lives, because they believed that this time must be different; that their voice could be that difference.

It's the answer spoken by young and old, rich and poor, Democrat and Republican, black, white, Latino, Asian, Native American, gay, straight, disabled and not disabled - Americans who sent a message to the world that we have never been a collection of Red States and Blue States: we are, and always will be, the United States of America.

It's the answer that led those who have been told for so long by so many to be cynical, and fearful, and doubtful of what we can achieve to put their hands on the arc of history and bend it once more toward the hope of a better day.

It's been a long time coming, but tonight, because of what we did on this day, in this election, at this defining moment, change has come to America.

I just received a very gracious call from Senator McCain. He fought long and hard in this campaign, and he's fought even longer and harder for the country he loves. He has endured sacrifices for America that most of us cannot begin to imagine, and we are better off for the service rendered by this brave and selfless leader. I congratulate him and Governor Palin for all they have achieved, and I look forward to working with them to renew this nation's promise in the months ahead.

I want to thank my partner in this journey, a man who campaigned from his heart and spoke for the men and women he grew up with on the streets of Scranton and rode with on that train home to Delaware, the Vice President-elect of the United States, Joe Biden.

I would not be standing here tonight without the unyielding support of my best friend for the last sixteen years, the rock of our family and the love of my life, our nation's next First Lady, Michelle Obama. Sasha and Malia, I love you both so much, and you have earned the new puppy that's coming with us to the White House. And while she's no longer with us, I know my grandmother is watching, along with the family that made me who I am. I miss them tonight, and know that my debt to them is beyond measure.

To my campaign manager David Plouffe, my chief strategist David Axelrod, and the best campaign team ever assembled in the history of politics - you made this happen, and I am forever grateful for what you've sacrificed to get it done.

But above all, I will never forget who this victory truly belongs to - it belongs to you.

I was never the likeliest candidate for this office. We didn't start with much money or many endorsements. Our campaign was not hatched in the halls of Washington - it began in the backyards of Des Moines and the living rooms of Concord and the front porches of Charleston.

It was built by working men and women who dug into what little savings they had to give five dollars and ten dollars and twenty dollars to this cause. It grew strength from the young people who rejected the myth of their generation's apathy; who left their homes and their families for jobs that offered little pay and less sleep; from the not-so-young people who braved the bitter cold and scorching heat to knock on the doors of perfect strangers; from the millions of Americans who volunteered, and organized, and proved that more than two centuries later, a government of the people, by the people and for the people has not perished from this Earth. This is your victory.

I know you didn't do this just to win an election and I know you didn't do it for me. You did it because you understand the enormity of the task that lies ahead. For even as we celebrate tonight, we know the challenges that tomorrow will bring are the greatest of our lifetime - two wars, a planet in peril, the worst financial crisis in a century. Even as we stand here tonight, we know there are brave Americans waking up in the deserts of Iraq and the mountains of Afghanistan to risk their lives for us. There are mothers and fathers who will lie awake after their children fall asleep and wonder how they'll make the mortgage, or pay their doctor's bills, or save enough for college. There is new energy to harness and new jobs to be created; new schools to build and threats to meet and alliances to repair.

The road ahead will be long. Our climb will be steep. We may not get there in one year or even one term, but America - I have never been more hopeful than I am tonight that we will get there. I promise you - we as a people will get there.

There will be setbacks and false starts. There are many who won't agree with every decision or policy I make as President, and we know that government can't solve every problem. But I will always be honest with you about the challenges we face. I will listen to you, especially when we disagree. And above all, I will ask you join in the work of remaking this nation the only way it's been done in America for two-hundred and twenty-one years - block by block, brick by brick, calloused hand by calloused hand.

What began twenty-one months ago in the depths of winter must not end on this autumn night. This victory alone is not the change we seek - it is only the chance for us to make that change. And that cannot happen if we go back to the way things were. It cannot happen without you.

So let us summon a new spirit of patriotism; of service and responsibility where each of us resolves to pitch in and work harder and look after not only ourselves, but each other. Let us remember that if this financial crisis taught us anything, it's that we cannot have a thriving Wall Street while Main Street suffers - in this country, we rise or fall as one nation; as one people.

Let us resist the temptation to fall back on the same partisanship and pettiness and immaturity that has poisoned our politics for so long. Let us remember that it was a man from this state who first carried the banner of the Republican Party to the White House - a party founded on the values of self-reliance, individual liberty, and national unity. Those are values we all share, and while the Democratic Party has won a great victory tonight, we do so with a measure of humility and determination to heal the divides that have held back our progress. As Lincoln said to a nation far more divided than ours, "We are not enemies, but friends...though passion may have strained it must not break our bonds of affection." And to those Americans whose support I have yet to earn - I may not have won your vote, but I hear your voices, I need your help, and I will be your President too.

And to all those watching tonight from beyond our shores, from parliaments and palaces to those who are huddled around radios in the forgotten corners of our world - our stories are singular, but our destiny is shared, and a new dawn of American leadership is at hand. To those who would tear this world down - we will defeat you. To those who seek peace and security - we support you. And to all those who have wondered if America's beacon still burns as bright - tonight we proved once more that the true strength of our nation comes not from our the might of our arms or the scale of our wealth, but from the enduring power of our ideals: democracy, liberty, opportunity, and unyielding hope.

For that is the true genius of America - that America can change. Our union can be perfected. And what we have already achieved gives us hope for what we can and must achieve tomorrow.

This election had many firsts and many stories that will be told for generations. But one that's on my mind tonight is about a woman who cast her ballot in Atlanta. She's a lot like the millions of others who stood in line to make their voice heard in this election except for one thing - Ann Nixon Cooper is 106 years old.

She was born just a generation past slavery; a time when there were no cars on the road or planes in the sky; when someone like her couldn't vote for two reasons - because she was a woman and because of the color of her skin.

And tonight, I think about all that she's seen throughout her century in America - the heartache and the hope; the struggle and the progress; the times we were told that we can't, and the people who pressed on with that American creed: Yes we can.

At a time when women's voices were silenced and their hopes dismissed, she lived to see them stand up and speak out and reach for the ballot. Yes we can.

When there was despair in the dust bowl and depression across the land, she saw a nation conquer fear itself with a New Deal, new jobs and a new sense of common purpose. Yes we can.

When the bombs fell on our harbor and tyranny threatened the world, she was there to witness a generation rise to greatness and a democracy was saved. Yes we can.

She was there for the buses in Montgomery, the hoses in Birmingham, a bridge in Selma, and a preacher from Atlanta who told a people that "We Shall Overcome." Yes we can.

A man touched down on the moon, a wall came down in Berlin, a world was connected by our own science and imagination. And this year, in this election, she touched her finger to a screen, and cast her vote, because after 106 years in America, through the best of times and the darkest of hours, she knows how America can change. Yes we can.

America, we have come so far. We have seen so much. But there is so much more to do. So tonight, let us ask ourselves - if our children should live to see the next century; if my daughters should be so lucky to live as long as Ann Nixon Cooper, what change will they see? What progress will we have made?

This is our chance to answer that call. This is our moment. This is our time - to put our people back to work and open doors of opportunity for our kids; to restore prosperity and promote the cause of peace; to reclaim the American Dream and reaffirm that fundamental truth - that out of many, we are one; that while we breathe, we hope, and where we are met with cynicism, and doubt, and those who tell us that we can't, we will respond with that timeless creed that sums up the spirit of a people:

Yes We Can. Thank you, God bless you, and may God Bless the United States of America.