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Hotpot Diplomacy: Malaysia Taps Palm Oil for Plant-Based Tallow in China

The iconic mala hotpot of China’s Sichuan-Chongqing region, traditionally made with beef tallow, is being reimagined through Malaysian palm oil innovation. With new palm-based alternatives developed by the Malaysian Palm Oil Board (MPOB), this popular dish may soon be enjoyed globally — including by vegetarians, Muslims, and health-conscious consumers.

Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin, revealed that this initiative is one of the flagship projects by the Palm Oil Research and Technical Service Institute of Malaysia (PORTSIM), MPOB’s Shanghai-based research arm. The goal is to enhance the value of palm oil through scientific research and strengthen its application and position in China.

In a statement today, Chan announced that PORTSIM is currently collaborating with Shanghai Jiao Tong University and Zhangbingbing Biotechnology Holdings Co., Ltd. on a joint R&D project. The focus: developing a plant-based tallow replacer made from palm stearin and palm oil mid-fraction, to be used in hotpot paste production. This is not only essential for mala hotpot, but also widely used in various Sichuan dishes such as málàtàng (麻辣烫), Maoxuewang (毛血旺), Sichuan boiled beef etc.

“This project is important because the palm-based tallow offers a more cost-effective solution while matching the flavour and texture of traditional beef tallow,” said Chan. “Compared to animal fats like beef tallow, plant-based oils are cholesterol-free, have stable and sustainable sources, and better align with today’s trends in health and sustainability.”

Early research indicates that hotpot paste made with palm-based tallow closely replicates the fat content and sensory experience of traditional beef tallow. In addition, the plant-based alternative is suitable for vegetarians and Muslims, allowing more people to enjoy the signature taste of mala hotpot.

Palm oil — particularly palm stearin and palm shortening — is already widely used in hotpot paste due to its high melting point, semi-solid form at room temperature, and excellent plasticity.

Chan emphasized that the project underscores PORTSIM’s strategic role in China: using scientific innovation to fully tap into the versatility of Malaysian palm oil and promote its use in China’s vibrant culinary landscape.

As Chinese consumers grow more health-conscious and seek functional food options, Malaysia is actively promoting red palm oil, specialty palm-based fats, and medium-chain triglycerides (MCTs). Collaborations with food manufacturers in Sichuan and Chongqing are opening new entry points for palm oil — in hotpot pastes, mala-flavoured snacks, green personal care products, and polyurethane coatings.

According to market research platform Guanyan Tianxia, China consumed approximately 1.3 million tonnes of oils and fats for hotpot paste production in 2024. Of this, palm oil usage was estimated at 230,000 tonnes, or 18% of the total — valued at roughly RMB 1.24 billion. The shift is largely due to insufficient domestic production of beef tallow, which stood at only 1.246 million tonnes in 2024 (according to Oil World), with Sichuan and Chongqing among the main regions driving palm oil demand in the hotpot sector.

Last week, Chan led a Malaysian delegation to Chengdu and Chongqing, visiting key companies central to China’s hotpot industry. These included:

• Teway Food Group (天味集团), a major publicly listed compound seasoning producer;

• Zhangbingbing Biotechnology Holdings Co., Ltd. (张兵兵), ranked China’s top beef tallow supplier for hotpot by Frost & Sullivan;

• Chongqing Dezhuang Industrial Group (重庆德庄), a leading player in hotpot paste development.

•Together, these companies consume around 500,000 tonnes of edible oil annually, with palm oil accounting for approximately 120,000 tonnes.

PORTSIM is also working with Teway Food Group on a research project titled “Application of Red Palm Oil in Hotpot Seasonings and Its Impact on Odor Adsorption in Clothing” — highlighting red palm oil’s health benefits while improving product quality and user experience.

Meanwhile, Zhangbingbing is partnering with PORTSIM and Shanghai Jiao Tong University to develop palm-based tallow alternatives — a strategic step toward sustainable, low-carbon food innovation. Chongqing Dezhuang is also collaborating with New Land-Sea Corridor Operation Co., Ltd. (NLSC) on the development and production of palm oil-based hotpot pastes.

Malaysia’s bilateral trade with Chongqing has reached USD 3.27 billion, with palm oil playing an increasingly important role not only in hotpot bases, but also across green chemicals and oleochemical value chains.

“This is more than just culinary exchange — it’s hotpot diplomacy,” said Chan. “Malaysia is proud to contribute to the evolution of China’s food culture while deepening trade and technology partnerships through palm oil.”