Building industry is currently under pressing need to move towards a sustainable and productive practice. The demand in residential projects keeps on rising, especially in developing countries. The Industrialized Building System (IBS) is deemed to be more sustainable compared to the traditional construction that uses bricks and mortar. However, there is limited uptake for IBS, especially in the housing sector. The lack of incentives and small-scale projects among main factors impede the increase of implementing IBS in residential projects. Around 5 million housing units have been built in Malaysia by both private and public sector since the first IBS housing project is commenced in 1966. Yet, the gap between supply and demand is around 43 (shortage) with small share for IBS in the housing sector. This study Examined IBS projects growth in term of scale, type and classification development in Malaysian context. Then, analysed reasons, impacts and expected results when employing IBS in Malaysia. The findings illustrate the timeline of IBS establishment and development of IBS housing and building projects in Malaysia. This study tracked the development of IBS with greater focus on housing. Moreover, this study reviewed and analysed the way forward to uplift IBS implementation to a higher level. Finally, this study will guide future research and draw the line for other developing countries to follow the path and learn from such experience. © Published under licence by IOP Publishing Ltd.