If there is any kind of discharge (yellow or green) you probably need to make an appt. to see the Vet.
I have found with my male peke that I had more problems when I did snip his noodle hair, as opposed to just washing and drying that area regularly, I was told by other peke owners that having it stay fairly long is actually a good thing as it tends to keep urine away from his under belly and the hairs act as an "eavestrough" and should therefor not be cut too close to the actual noodle. Also I've been told that it acts as a barrier preventing bacteria from entering. I have found since I decided not to clip him, he is much cleaner and his junk is less smelly but that is just my personal experience. I guess a lot could depend on the height of the dog too. Mine is pretty close to the ground and can pick up bacteria easily.
But again, if his seepage is sticky or crusty, I would have him checked out