Past models and tools that support in the decision making process based on Asset Management Principles (AMP) are lacking in terms of the effective outcomes and transparency of the process in the highway maintenance. There is also little research on how to align the decision areas when applying AMP and how to improve the inclusive effectiveness. Hence, the paper focuses on examining the challenges and prospects of applying AMP in a highway maintenance agency or department. An exploratory research method was used through an extensive review of literature and an industry survey. The findings from the literature and case study review were used to design a questionnaire and conduct the survey. The survey results revealed that the AMP are only being implemented ineffectively in maintaining highways, and a strong commitment is required to improve the asset management capability for effective use of the asset data. It is highly recommended that the Highway Agency should issue a guideline for implementing asset management policy and also encourage associate departments to achieve asset management maturity level 3 so that ISO55000 certification can be achieved. The study concludes that there is still substantial work needed within the asset management process, particularly in highway maintenance before its effectiveness can be realised and measured.