"Few Asians have made such an impact as Lee. His passing was a reminder of how big a role he played in steering and shaping modern Singapore," the award citation said.
Singapore turns 50 with huge parade, tribute to Lee Kuan Yew
Lee, who died in March aged 91, received a hero's funeral after an unprecedented outpouring of grief from Singaporeans who now enjoy one of Asia's highest standards of living.
He was consulted for decades by world leaders for his views on Asian affairs.
The legacy of Lee Kuan Yew
But Lee, who was prime minister from 1959 to 1990, was also criticised locally and abroad for restricting political freedom, including muzzling the press, jailing political opponents and suing critics for defamation.
The Straits Times, founded 170 years ago, launched the award in 2012.
Singapore's first prime minister Lee Kuan Yew dead
The inaugural winner was Myanmar President Thein Sein, who started political reforms in the former military-ruled state. In 2013, it was shared by Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe.
India's Prime Minister Narendra Modi was selected in 2014.
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