Many financially-strapped single mothers in Malaysia have become surrogate mothers for childless couples from Singapore.
China Press reported that the wo-men were willing to do it for a fee.
The report said that many childless couples in Singapore were willing to pay S$40,000 for such services, even if the surrogate mother's name was listed as the baby's mother on the birth certificate.
Quoting a man who has been providing surrogacy services to childless couples in the republic, Ho Kok Keong, 60, said that he started the business seven years ago.
Knowing the legal limitations on surrogacy, Ho has been arranging for such couples and suitable surrogate mothers to undergo all the procedures to get pregnant in Thailand.
It is illegal for a woman to become a surrogate mother in Singapore.
Childless couples are prohibited from seeking surrogacy and it is also unlawful for local doctors to help in surrogacy.
The surrogate mother will usually give birth to the baby in her own country, with her name listed as the birth mother. The couple will then come back after the baby is born.
"They will go through the local procedures and they can bring back the baby legally," he said, adding that the whole deal cost S$45,000.
He said that all of the 10 surrogate mothers he had been working with were aged between 20 and 22.