SBSTransit estimates its annual loss to fare evasion to be a whopping $9million.
Every day, there are an estimated 42,000 cases of cheating on bus fares.
But if the cheats are caught, harsh punishment awaits them.
Recalcitrant fare evaders may even find themselves in jail.
In October 2005, Parliament passed the Public Transport Council (Amendment) Bill.
To tackle cheating on fares, it provides for a penalty scheme which, however, is yet to be implemented.
Under the scheme, punishments for non-payment or underpayment of fares range from a $20 penalty to a fine of up to $2,000 and up to six months in jail for recalcitrant fare evaders. (See chart above.)
When the bill was passed, there was a heated debate on whether cheating on bus fares that average $1 called for such severe punishments.
NOT AWARE
Account management specialist Evelyn Boh, 31, who admitted to under-paying her bus fares on more than one occasion when she was a university student, said she was unaware such a law existed.
Said Ms Boh: "I am not surprised about the fine, but it is shocking to know that cheating on bus fares can put one in jail."
And while retiree Ruth Muthu, 54, agreed with the fine, she found the jail term too harsh.
She said: "Under-paying or not paying your fare is a form of cheating. The fine is not unreasonable, considering that bus fare cheats are breaking the law."
"But to go to jail over a few cents or even a dollar is too heavy a punishment."
But the penalties may serve more as a deterrent.
Despite the introduction of the ez-link system, fare evaders still find ways of cheating.
According to SBS Transit, one of these is to misuse concession cards.
Another way is to tap the cards at the exit without getting off.
Others put the incorrect amount in coins into the fare box.
As taking fare cheats to court is considered a drastic measure, most of those caught by ticket inspectors are just made to pay the correct fare.
Said Ms Tammy Tan, SBS Transit's director of corporate communications: "In a situation where the passenger underpays, he or she will be asked to top up his or her fares.
In cases where the commuter refuses, we will contact the police for assistance.
"We are working with the authorities on the implementation details of the Penalty Fee Scheme."
According to a spokesman from the Public Transport Council, the Public Transport Council (Amendment) Act 2005 took effect on 3 Apr last year, but not the provisions on penalties.