In 1978, the Penang State Government launched another 1200 units of housing using prefabrication technology. Two years later, the Ministry of Defense (MOD) adopted large prefabricated panel construction system to build 2800 unit of living quarters at Lumut Naval Base.
IBS system was engage at first place in the construction of low-cost high-rise residential building to overcome the increasing demand for housing needs. Many construction in at this time utilised precast wall panel system. Nonetheless, the industrialisation of construction was never sustained in this period.
Failure of early closed fabricated systems had resultant the industry to avoid of changing their construction method to IBS. Some of the foreign systems that were introduced during the late 60s and 70s were also found not to be suitable with Malaysia climate and social practices.
Newer and better technologies were constantly being introduced than in the market since wet joint systems were identified to be more suitable to be used in our tropical climate and it was also better to utilised the bathroom types which were relatively wetter than those in the Europe.
At the same time recent innovation the form of precast concrete sandwich wall panels developed in Europe, has received wide acceptability in countries having hot temperature climates due to better insulating properties resulting in a cooler in door environment and has been send in several pilot projects in Malaysia through 1970s to 1980s period