Merdeka 118 taking KL to new heights

Premier destination: (From left) PNB Merdeka Ventures Sdn Bhd communications vice-president Liza Karim, Tengku Abdul Aziz and Wang. Many retailers who had initially signed on for a specific space have since requested for a larger space, according to Wang.

MERDEKA 118 represents one of Permodalan Nasional Bhd’s (PNB) most significant development to date, with a cost of RM5bil.

With this project, Malaysia’s biggest fund management company is transforming Kuala Lumpur’s skyline and redefining its surrounding precinct while taking advantage of the city’s rich heritage.

Last year, Merdeka tower officially opened, following the completion of phase 1 of the development.

At 678.9 m, Merdeka 118 is the world’s second-tallest building.

It is located in a historically significant area, surrounded by landmarks such as Stadium Merdeka and Stadium Negara, as well as Chinatown in Petaling Street.

The 118-storey building comprises 84 floors of office space, housing tenants like PNB and soon, Malayan Banking Bhd (Maybank), while 17 floors (97-112) are for Malaysia’s first Park Hyatt Hotel.

The tower will also be home to South-East Asia’s highest observation deck, The View at 118, which will open to the public in the fourth quarter of this year (4Q25).

Phase 2 centres around 118 Mall, which is scheduled to open in 2Q26.

Developer PNB Merdeka Ventures Sdn Bhd envisions Merdeka 118 as more than just a commercial space. It aims to be a fully integrated lifestyle and cultural hub, attracting both locals and tourists.

Their vision for Merdeka 118 is not just as a skyscraper, but a precinct where heritage meets modernity.

More than just a tower

“The whole idea is to make this place a destination,” says Tengku Datuk Abdul Aziz Tengku Mahmud, the chief executive officer of PNB Merdeka Ventures.

He anticipates an annual footfall of 22 million to 23 million visitors to the 118 Mall in its first year, driven by its strategic location and integration with surrounding attractions.

Initially, domestic tourists are expected to make up about 70% of visitors, with numbers set to grow as the observation deck, a textile museum and hospitality offerings gain international traction.

Tengku Abdul Aziz says Merdeka 118 Tower will house 10,000 professionals when it is fully leased.

Those alone will provide the mall with steady footfall and a strong catchment. Maybank, PNB, Park Hyatt and all the other tenants in the tower will visit the mall on a daily basis because of its convenient location, he says.

Tengku Abdul Aziz believes the observation deck will have a significant impact on the mall and the surrounding area.

“Based on our discussions with Tourism Malaysia, we expect the observation deck to become a major draw, especially during Visit Malaysia Year 2026.”

Among the features he highlights is the bubble lift, a glass elevator with a glass floor that travels 65 seconds from the bottom to the top of the building.

“It’s a must-see for tourists. Locals, particularly domestic tourists, will have another reason to visit the city.

“It’s not just about shopping anymore. You can also stay at the hotel, visit the deck, dine, shop, take in a concert, and even look around the textile museum.”

118 Mall

The 118 Mall spans 808,080 sq ft of net lettable space, with Village Grocer as one of the anchor tenants, occupying 27,000 sq ft alongside a 44,000 sq ft food hall.

Many retailers who had initially signed on for a specific space have since requested for a larger space, according to 118 Mall’s retail head Sue Wang.

“We’re fetching reasonable rates, especially considering our location, design and projected footfall.” She says leases typically last between nine and 12 years.

In terms of tenant positioning, Wang says market research five years ago indicated that the mall’s size and location were best suited to the mid-market to upper-end segment.

Furthermore, she says that people wanted to rediscover Kuala Lumpur post-Covid, to visit, explore and spend time here.

Rather than creating a high-end mall, we designed a place where you can do everything: stay, shop, attend a concert, visit a museum, eat local food, or just enjoy the park. It’s not just about luxury, it’s about experience and community.

Merdeka 118 Tower itself received a lot of attention, but significant investments were also made in its surrounding infrastructure.

According to Tengku Abdul Aziz, RM500mil was allocated solely for such infrastructure.

“This includes road upgrades, pedestrian access, and the Belfield Tunnel – a rare double-decker tunnel that provides seamless ingress and egress from the Federal Highway straight into the tower’s car park,” he says.

On connectivity through public transport, Wang highlights the precinct’s seamless access.

“The Merdeka MRT station directly links to the precinct, with access to the tower from B3; the LRT underpass from Plaza Rakyat to Merdeka Station; and the monorail stop at Maharajalela Station, all within walking distance,” she says.

“Whether you’re arriving by car, train or even walking from Petaling Street, access is seamless.”

Sustainability the key

Beyond connectivity, sustainability was a key priority in developing Merdeka 118.

“When we started the design, we said we must get the highest green building standards,” Tengku Abdul Aziz says.

This commitment led to the pursuit of multiple certifications, including LEED Platinum – the highest tier of the US-based rating system – as well as Malaysia’s Green Building Index and Green Real Estate, or GreenRE.

“All three achieved platinum status at the design stage, with LEED Platinum now fully validated upon completion,” he says.

Energy efficiency was a major focus, with the building designed to consume nearly 30% less energy than similar structures.

Key features include 100% rainwater harvesting, underfloor air conditioning for improved cooling efficiency, and a facade engineered to reduce heat absorption.

The triple-layered glass, combined with a low-emission coating, minimises heat gain while optimising natural light.

LED lighting is used throughout the development to further enhance energy saving, while solar panels supply hot water for hotel floors.

Integrating sustainable features increased construction costs by 5% to 7%, but the long-term benefits outweigh the initial investment, Tengku Abdul Aziz says.

In relation to smart technology integration, he says that while development hasn’t gone entirely AI-driven, smart features have been implemented where they add the most value.

“We use AI-powered destination dispatch in our lift system, for example. Lifts are assigned according to the number of people waiting, reducing wait times and energy consumption.”

In spite of advancements in automation, Wang emphasises the importance of human interaction. “While AI has its place, we prioritise human interaction at key points like the concierge desk and customer service.”

The mall is part of a phased development, with each new building forming an integrated whole over time. The final phase, launching next year, will include two residential towers and a serviced apartment under the Oakwood Premier brand, completing the vision of a fully integrated, future-ready precinct.