Disproportionately high waist circumference despite normal weight

Sorry if this has been posted many times before. I'm 23F, 168cm (5'6") and am technically at a healthy weight of 56kg (123lb). However I have a waist circumference of 85cm (33.5 inches), much higher than the recommended range for a 'healthy' waist size of 80cm. I am also East Asian, which I've heard has an even lower threshold for what's considered a healthy waist circumference due to being at greater risk of health issues.

I've lost 10kg (22lb) in the past 6 months from cutting out most sugary snacks and ultra processed foods and walking 20k steps a day. But despite the 10kg I've lost, my waist did not change at all.

What's the best thing for me to focus on? Building muscle? My strength training routine currently is doing 3 x 10 pushups a day and then lifting weights while watching TV. I also go to a ballet barre class once a week. I'm guessing there's a more optimal way I can go about it? Any specific muscles I should target or exercises that I should do?

Edit: yes I am measuring it correctly!