In a nutshell healthy competition is constructive. It builds because in the system we are not trying to "win" against the other. We are trying to be the best we can be. Ergo its a win win system and not a zero sum game.
On the other hand unhealthy competition is zero sum. I win and you lose. From this system, we do whatever we can to "kill" off the other. We have seen its ugly face in Malaysian chess. Match fixing, sabotage etc. Unhealthy competition disempowers us. Its a system that blames the other for our failures or conversely we look for excuses to explain it. It destroys. From here we can understand the culture of finger pointing since it is not about self improvement. It is not a system of deserved win by becoming better and better. Ergo it is not a system that can build genuine confidence.
In Malaysian chess there are signs that we are more aware of this now. If we can keep this up and build on it we will begin to move forward. By combining strengths that GM will come. All we need now is unity of purpose. Everything else we already have.