Construction was controversially entirely funded by Permodalan Nasional Berhad, an investment management company owned by the Malaysian government.

[19] The building is a mix of office spaces, hotels, and retail outlets and an observatory floor which will be the highest observation deck in Southeast Asia.

[21][22] The Merdeka 118 precinct is a 19 acres (7.7 ha) land development funded by Permodalan Nasional Berhad (PNB),[23][24] a state-owned enterprise of the Malaysian government.

[13] Prime Minister Najib Razak, who would eventually be directly involved with the 1MDB scandal, claimed that the project was not a waste and it would "bring more benefits" by generating "economic opportunities".

[4] The design was made to resemble and inspired by Tunku Abdul Rahman's outstretched hand gesture while chanting "Merdeka!

[39] On 23 November 2015, PNB announced a contract worth RM3.4 billion has been awarded to the joint venture of South Korea's Samsung C&T and UEM Group Berhad.

[42] The Park Hyatt Kuala Lumpur will occupy the top 17 floors of the building; It is slated to have 232 units, including 28 suites and 30 apartments.

The construction was halted on 18 March 2020 due to the Movement Control Order in Malaysia caused by the COVID-19 pandemic in the country, but works resumed in mid-May 2020.

[15] On 10 January 2024, Yang di-Pertuan Agong Al-Sultan Abdullah officially inaugurated Merdeka 118, stated that the new landmark "symbolises the people celebrating the diversity of the country as an independent nation".

[46] In 2022, a viral video began circulating online when a group of American individuals[47] trespassed towards the top of Merdeka 118, prompting criticism of the lack of security measures at the site.

[49] That same year, another trespassing incident occurred when Russian rooftoppers Angela Nikolau and Ivan Beerkus scaled the spire of Merdeka 118, prompting further criticism.