The rash on baby's face looks like small, yellow-to-white-colored bumps surrounded by red splotches so it could be Erythema toxicum. This rash usually appear in approximately half of all normal newborn infants. Erythema toxicum is harmless and its cause is unknown, usually disappearing without any treatment. A friend of mine tried dabbing breast milk on her baby's rash and it seemed to reduce the redness but it only fully cleared up in 2 weeks -- so I reckon waiting for it to clear off naturally is best.
It can be. My baby had the same and what I did was wash it with mild soap and water and pat it dry. Tried applying some breastmilk but I agree to Idza that it'll only reduce the redness. Best thing I do I guess is make sure your kid won't scratch it as it may become worse and always make sure your hands are clean when you touch his face. Don't worry it will clear off soon! :) You can get more info here: http://www.whattoexpect.com/first-year/baby-care/baby-skin-care/infant-acne.aspx
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