ABOUT $40,500 worth of contraband cigarettes were found hidden in a Malaysian-registered lorry's secret compartment on Monday evening.

Immigration and Checkpoints Authority officers at Woodlands noticed the freshly-painted rivets on the container lorry and ordered further checks.

They found the inner length of the container significantly shorter than its exterior.

A total of 450 cartons of duty-unpaid cigarettes were found hidden at the front of the container, just behind the driver.

The 36-year-old Malaysian driver has been arrested.

He claimed that the 'job' was given to him by loan-sharks whom he owed RM30,000 (S$13,135).

He would be paid RM$900 if his delivery was successful.

The Singapore Customs is investigating the case further.

First time offenders can be fined up to a maximum of 20 times the amount of duty evaded.

For second or subsequent convictions, offenders can be jailed for up to two years, as well as being fined. The offenders also face further fines based on the amount of GST evaded.