Roughly chop the raw shrimp and place them in a food processor. Pulse until finely minced but not pureed.
Transfer the minced shrimp to a mixing bowl. Add minced garlic, minced shallot, cornstarch, all-purpose flour, salt, white pepper, sugar, egg white, and cold water.
Mix all ingredients thoroughly until a sticky and cohesive shrimp paste forms.
Using wet hands, shape the shrimp mixture into small balls about 1 inch in diameter.
Roll each shrimp ball in panko breadcrumbs until fully coated. Set aside on a plate.
Heat vegetable oil in a deep pan or fryer to 175°C (350°F). The oil should be deep enough to fully submerge the shrimp balls.
Carefully fry the shrimp balls in batches for 3 to 4 minutes or until they turn golden brown and crispy.
Use a slotted spoon to remove the shrimp balls and drain on paper towels to remove excess oil.
Serve the crispy shrimp balls hot with the sweet chili sauce on the side for dipping.