Managed Instance has memory that is proportional to the number of cores. As an example, in Gen5 architecture you have 5.1GB of memory per vCore, meaning that 8-core instance will have 41GB memory. Periodically you should check is this amount of memory good for your workload.
Do not monitor does the Managed Instance use ~100% of available memory. Some people believe that this is an issue (like hitting 100% CPU), but this is expected and desired behavior. Managed Instance should use as much as possible memory to cache the pages from disk into the buffer pool. The only case where you will not see near 100% usage of memory is the case where you have the databases much smaller that the available memory size so all of them can fit into the memory.
The spoiler version is that it’s the same process as on-prem.