“This is to protect passengers, as drivers using licensed vehicles are required to have valid insurance coverage for passengers,” he said in a post on Facebook.

Commending the republic’s Land Transport Authority for its recent interception of four drivers attempting to provide illegal cross-border services, Chee told the LTA to take a firm stance against these practices and conduct undercover operations to catch errant drivers.

“To drivers thinking of offering such illegal services, let me say this: think carefully before breaking the rules, as your next customer may actually be an undercover LTA officer,” he warned.

LTA said it took such offences very seriously.

“For your safety, do refrain from using such services. Besides being illegal, the vehicles used may not be sufficiently insured against third-party liabilities, which could pose a serious problem for passengers should an accident occur,” said the LTA.

It said drivers caught providing illegal hire-and-reward services, including cross-border services without a valid public service vehicle licence, can be fined up to S$3,000 (RM10,680), jailed for up to six months, or both.

“The vehicle used may also be forfeited,” it said.