Malaysian property group UEM Sunrise Bhd said on Monday it will review merging with Eco World Development Group Bhd after the idea was proposed by its major shareholder UEM Group.

UEM Group, which owns 66 percent of UEM Sunrise, is owned by Malaysia's sovereign wealth fund Khazanah Nasional. It said in a letter on Friday that there was a "pressing need" for consolidation due to "subdued macro-economic conditions and market headwinds"...