The Chinese national and two other passengers were also arrested.
Immigration and Checkpoints Authority (ICA) said the 29-year-old Malaysian driver admitted to trying to help the 38-year-old immigration offender leave Singapore illegally.
The driver revealed that he was promised 500 ringgit by his Malaysian friend if he succeeds in smuggling the suspected Chinese overstayer out of Singapore.
The immigration offender said he paid S$2,000 to an agent to help him leave Singapore.
ICA said the driver, passengers and the immigration offender are under investigation.
The vehicle used in committing the offence has been detained and could be seized.
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