1. Is the NTSC PS3 console can play with Malaysia PAL tv set? HDMI cable can solve the problem?

Are you planning to play on SDTV ? If not, then you should not have any problem because you will use HDMI on HDTV.
NTSC and PAL are just video signals used with composite and component cables. HDMI is universal and doesn't use either NTSC or PAL video signals.

2. The NTSC PS3 console can play asian region games (PAL)?

From what I know, PS3 can play games from any region, meaning it is region free, but it will not be able to play some movies from other region.

3. What is this NTSC and PAL do?

NTSC or PAL is just the analog television system that is used in specific regions.

NTSC = National Television System Committee.
PAL = Phase Alternating Line.

NTSC is able to deliver a frame rate of 30 fps, meanwhile PAL uses a frame rate of 25fps.

If my friend didn't use HDTV, use normal TV, anything he need to take note?