Sustainable design and construction have gained increasing research interest, and reduction of carbon from building construction has become the main focus of environmental strategies in Malaysia. This study uses life cycle assessment and life cycle inventory analysis frameworks to estimate the amount of carbon footprint expressed in carbon dioxide equivalent tons (CO2e) produced by manufacturing prefabricated Industrialized Building System sandwich panels and its installation for a five-story hostel in Perlis, Malaysia. Results show that the carbon footprint hotspots were centered on boiler machine operation and cement with 4.52 and 369.04 tons CO2e, respectively. This finding is due to the extensive energy used for steam heating and high engine rating for the boiler. However, for cement, the carbon footprint hotspots are caused by the large quantity of cement applied in shotcrete mixture and its high extraction and production CO2 emission values. The overall onsite materials generated 96.36% of the total carbon footprint. These carbon footprint hotspot results constitute a necessary base for the Malaysian government in accomplishing an adequate dimensioning of carbon emissions in the building sector.