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Special Report 

Written on 26 May 2024

Behind The Scenes: The One and Only Nutmeg Factory In Pulau Pinang

Ghee Hup Nutmeg Factory, located in Balik Pulau, Penang has become a popular tourist attraction in the area and also in the application Youtube. As a tourist attraction, Ghee Hup Nutmeg Factory provides a short but interesting detour or stop for visitors exploring the Southwest Penang Island Region.

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Weng Kit, a local tourist from Ipoh visited the nutmeg factory because their products are very famous. Weng Kit's family is aware of nutmeg and has a demand for it. Weng mentioned that he wants to promote the benefits of nutmeg to everyone because the function of nutmeg oil is good for the body and can reduce pain.

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The factory’s popularity as a tourist attraction highlights the growing interest in experiencing authentic local industries and supporting sustainable tourism practices in the region. This factory has marked its fifth generation as of today, a long historical journey till they had the opportunity to converse with Tun Dr Mahathir Mohammad and Tun Abdullah Haji Ahmad Badawi in the past.

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Nutmeg Tree  Photo Nuril Izni Binti Zakaria

Nutmeg follows in two different types which are young and mature. Young nutmeg is mainly used to prepare beverages and oil, taking advantage of its delicate, fresh taste. Young nutmeg is a great place to get essential oils, which are loved for their flavour and potential health benefits. Mostly, these oils are used for a variety of culinary, medicinal, and cosmetic purposes. On the other hand, mature nutmeg is often used as a spice in both savoury and sweet recipes due to its fully developed and strong flavour character.

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Mature nutmeg's warm, rich flavour compliments baked foods, soups, and sauces. Nutmeg seeds are different from many other plant seeds in that they require a particular planting procedure. Nutmeg farmers can get high-quality fruits that satisfy both commercial and gourmet standards by following these exacting production procedures.

Nutmeg Balm is one of the products that is produced in this factory. Photo Ahmad Imran Mohammad Roslani

The History Of The Ghee Hup Nutmeg Factory
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Chang Kun Min reminisces about the past of his factory. Photo Nuril Izni Zakaria

The history of the Ghee Hup Nutmeg Factory dates back to 1953 when Chang’s grandfather who had endured a tough life initially migrated all the way from Huizhou, Guangdong, China to Southeast Asia which is Penang, Malaysia with the instant decision to buy land at Jalan Tanjung Bungah, Kampung Sungai Pinang, 11000 Balik Pulau, Pulau Pinang.

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Chang’s grandfather eventually saved enough money to buy five plots of land to secure a future for his five children. However, the impulsive move did not take him long to start a legacy that would be known as a tourist attraction today in Penang.

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“After my grandfather bought the land, he was absolutely clueless, until he discovered nutmeg trees in that particular area. That is when everything changed,” said Chang.

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Chang’s father began selling nutmeg preserves that are locally known as salty-sweet as he bought nutmeg from across Balik Pulau and sold it to preserve factories.

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“After my grandfather and his men managed to master the various processes involving nutmeg, the production of candied nutmeg and later, canned salted citrus came in during my father’s era,” added Chang.

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Chang stated that efforts to develop and package nutmeg into more processed products were done in a collaboration between the factory and the wholesaler, which eventually expanded to wholesale to various supermarkets in 1965.

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“For over 20 years, this partnership was stable until the 1986 "Cooperative Crisis" and a global economic downturn led the department store chain to liquidate, severely impacting Zheng’s nutmeg business. Other challenges included the COVID-19 pandemic in 2020. The successful collaboration enabled nutmeg to be distributed throughout Malaysia,” said Chang.

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Chang stated that it is currently the third generation that is inheriting the business. He mentioned that there was no one available to help with the business and his daughter, Emily Chang, voluntarily assisted her father, which she had been doing for 10 years at the factory.

 

“I am 82 now and I have been in the industry for 53 years since I was 12 in 1953. Carrying on this family business is not just about preserving tradition, but also about sharing our unique family flavours with more people. The family business is our foundation, and I will do my utmost to pass on this solid foundation,” said Chang.

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The Process Of Producing The products in Ghee Hup Nutmeg Factory

The nutmeg process begins with cultivation; nutmeg trees, particularly female ones, bear fruit twice a year, typically around March and September. Harvesting involves collecting mature nutmegs, which are initially white and later turn brown as they mature.

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Post-harvest, the nutmegs undergo a sun-drying process. Mace, the red arils surrounding the nutmeg seed, is also sun-dried. Mature nutmegs are then cracked open to extract the seeds, which are further dried until they rattle inside their shells, indicating readiness for processing.

The sun-drying process of nutmeg. Photo Nuril Izni Zakaria

At the Ghee Hup Nutmeg Factory, the labour force engaged in nutmeg processing predominantly consists of individuals of Malay descent. This through employee selection is actually in alignment with strategic goals, designed to cater to the preferences of the local Malay population while providing them with a sense of comfort and familiarity when they consume nutmeg products from the business in question.

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This strategy demonstrates the factory's awareness of the social and cultural nuances of the demographic it is targeting, which is primarily Malay Muslims. The company fosters familiarity and trust with its Malay consumers by employing the Malays for positions involving nutmeg processing.

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In addition, Ghee Hup Nutmeg Factory's hiring strategy functions as a strategic differentiation in an extremely competitive sector. Through employee integration with the cultural preferences of its target market, the factory sets itself apart from its competitors and increases its appeal to Malay consumers. Along with fostering customer loyalty, this market difference positions the business as a socially conscious and culturally aware company.

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The Chang family has been involved in the Ghee Hup Nutmeg Factory's remarkable development from a small-scale agricultural business to a renowned manufacturer of goods produced from nutmeg in the Penang area. Notably, Chang Kun Mim led a significant diversification of the initiative, adding innovative products such pickled nutmeg, nutmeg syrup, and nutmeg balm to the product line. The enterprise's survival has been strengthened by this strategic expansion, which has served as a safeguard against the changes in raw nutmeg pricing

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Chang introduced the function of different parts in nutmegs. Photo Nuril Izni Zakaria

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C10, Balai Media, School of Communication, 10, Lengkok Sastera, 11800 Gelugor, Pulau Pinang

04-6533600

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