Now I must admit I'm not a great lover over karioke, it's just not my thing really but I have had some great times at karioke bars over the last 6 months, all depends on who you are with. There are dozens and dozens of karioke bars in Penang and of all the ones I have been to I like Red Box for the private cubicle events (the PCM near Gurney is good for larger private parties) but mostly I enjoy the open-plan places which have more of a regular bar feel and often, much more atmosphere.
For the open style of bar I have found that the Black and White Bar in Penang Road (almost opposite Cititel) is my favourite. They have another site here. It has a good atmosphere, some really great staff (my chum Nicole being one of them), has a good sound system and and is nicely decorated and furnished. The drinks prices are good too with a bucket of Tiger costing RM 58. So, if you fancy a karioke night with a few friends in a slightly more sophisticated environment with a good party atmosphere you should give Black and White a try, ask for Nicole and I'm sure she or any of the other staff will look after you.