Singh surpassed the single season earnings record on the PGA Tour in 2004, where he titled nine times, including his second PGA Championship victory, and in the process moved ahead of Tiger Woods to the top of the Official World Golf Ranking.
Singh, who is an honorary member of the European Tour, received the award after a much-debated vote from a panel of the Association of Golf Writers, Television and Radio, along with members of the European Tour.
The 41-year-old, who did not post a win in Europe in 2004, held off such candidates as Order of Merit winner Ernie Els, Miguel Angel Jimenez and Retief Goosen.
The PGA Championship was his only credited European Tour victory.
Jimenez, a four-time winner on tour and member of the victorious European Ryder Cup team, finished a controversial second.
Singh was named PGA Tour Player of the Year last week.