The transition towards a circular “Information and Communications Technology” (ICT) sector is an emerging concern globally. This paper reports on the same transition in Malaysia, focusing on sustainability and circular economy practices within the industry. The paper highlights the current practices in the ICT sector, such as waste reduction and the use of recycled materials are not widely adopted. Challenges to implementing circular economy measures include a lack of demand, difficulty accessing finance, and limited technical skills. Additionally, there is a perceived lack of government incentives and enforcement. The paper emphasizes the need for government support, including financial assistance, awareness campaigns, and legislation to promote circular economy practices. Despite these challenges, the circular economy is seen as an opportunity to meet increasing consumer demand for sustainable products and reduce operational costs. The paper concludes that further efforts are needed to create a supportive environment for the circular economy within Malaysia’s ICT sector.