The 41-year-old journalist was arrested earlier this week and he is expected to be charged today with supplying drugs.

He is facing up to 20 years in jail and 15 strokes of the cane if found guilty.

Police from Singapore's Central Narcotics Bureau (CNB) arrested Mr Lloyd on Wednesday.

He is accused of supplying a 31-year-old Singapore man with methamphetamine, or ice.

Police said they arrested the 31-year-old man in an apartment block in possession of 0.6 grams of methamphetamine.

"Further investigations established his supplier to be a 41-year-old Australian national who is in Singapore on a social visit pass," a CNB spokesman told AAP yesterday.

"The Australian national was arrested and in the course of follow-up search, the officers recovered a packet of ice weighing approximately 0.8 grams, one improvised smoking pipe and six syringes.

"His urine was screened positive for amphetamines, a controlled drug, on the instant urine test machine.

"He is under investigation for the offence of trafficking in a controlled drug under the Misuse of Drugs Act."

Another four Singapore men were arrested on suspicion of drug trafficking and consumption.

An ABC spokesman said Mr Lloyd was in Singapore on leave from his post in New Delhi.

"We currently are seeking further information and are in contact with consular officials in Singapore," the spokesman told AAP.

ABC News director John Cameron told Fairfax in a statement:"The ABC has not been told the full details of the case, but we were aware that Peter had been undergoing hospital treatment in Singapore for a serious eye infection which he contracted while on leave.

"The ABC is in close contact with consular officials and is also taking steps to ensure Peter is given appropriate legal representation."

A Department of Foreign Affairs and Trade spokesman said the Australian High Commission in Singapore was assisting Mr Lloyd.

Mr Lloyd was expected to return to Australia to start work as the host of ABC2's new breakfast show from September.

Singapore imposes severe penalties for drug use and possession, including a mandatory death penalty for anyone caught with more than 15 grams of heroin or more than 500 grams of marijuana. The death penalty does not apply to synthetic drug possession.