Competitiveness

Practically on an annual basis the main local paper like to trumpet about S'pore competitiveness among top 5 in the world since the 1990s.

Quoted definition below is the best i come across. In the 1990s most of S'poreans have seen their living standards rise. However from 2000 onwards it has become stagnation or decline for most- folks savaging rubbish bins & old folks cleaning at hawker centres/food courts.

"Competitiveness is the degree to which a nation can, under free & fair market conditions, produce goods & services that meet the test of international markets while simultaneously maintaining or expanding the real incomes of its citizens."

Are real incomes of citizens as bolded increase? Why harp about competitiveness when majority of citizens experienced otherwise in their daily lives? Reading the bolded words woke me up as to what is wrong with their 'competitiveness' good news.

What kind of competitivenss when it is reported that S'pore has the highest income inequality in the world?