To win the future, the nation needed to take on new challenges, as the world and business rules had changed due to technology revolutions, he added.

The nation had to out-innovate, out-educated and out-build the rest of the world to enjoy a better position to compete for the jobs and industries globally, he said.

Besides, he called for more investment in innovation, education and infrastructure to maintain the country's competitive edge and proposed annual domestic spending freeze for the next five years, which he said would reduce the deficit by more than US$400 billion over the next decade.

Pressing Iran, the Democratic People’s Republic of Korea (DPRK) over nuclear programs, Obama said that "because of a diplomatic effort to insist that Iran meet its obligations, the Iranian government now faces tougher and tighter sanctions than ever before."

"And on the Korean Peninsula, we stand with our ally the Republic of Korea, and insist that the DPRK keeps its commitment to abandon nuclear weapons," Obama said in his prime television time address, which outlines his administration's priorities for the new year.

In addition, Obama says U.S. keeping pressure on al-Qaida, Taliban. "Al-Qaida and their affiliates continue to plan attacks against us," he warned, “Law enforcement and intelligence community continued to disrupt plots and secure U.S. cities and skies, while taking the fight "to al-Qaida and their allies abroad."

And Obama hailed the approval of the new START treaty with Russia which marked a major diplomatic achievement he made since his inauguration. According to the treaty, the United States and Russia can hold no more than 1,550 nuclear warheads respectively, about one third less than the previous accord. Despite that, the two countries still own more than 90 percent of nuclear weapons of the entire world.