Industrialized Building System (IBS) were introduced to Malaysia to solve issues associated with dependencies of foreign workers, raising demand of affordable accommodations and improving image, quality and productivity of construction industry. This research is to highlights the current development of IBS in Malaysian construction industry and potential challenges related to the implementation of IBS. The objectives of the research are to identify the readiness of adapting IBS; determine the barriers in the implementation of IBS; and identify ways to enhance it. Questionnaires survey was conducted in order to achieve the objectives. The respondents consisted of architects, contractors, developers, consultants and quantity surveyors. The data were tabulated using Microsoft Excel and then analyzed using average index. In conclusion, the barriers of IBS in Malaysia has been identified and discussed. According to this research, technical limitation, lack of standardization and price of IBS are the main barriers in IBS implementation in Malaysia.