Smail was in immediate strife in the right-hand rough and sent his chip over the back of the green then missed a 3m putt to save par.
Crowds were already packing the next holes as the trio teed off on the par-four 390m 11th.
The early leaders were Australian pair Adam le Vesconte and Steven Bowditch who were both two-under. Le Vesconte had played six holes and fellow Queenslander Bowditch four, but half the field had yet to start their rounds.
The weather was brilliantly fine and still at the Paraparaumu Beach course, pointing to a string of low scores today.
Woods again found the soft Paraparaumu greens too tricky on his second hole, the 11th, when he slid another birdie attempt just past the hole then tapped in to remain even par.
It was another gettable birdie chance on one of the course's more difficult holes.
Woods' playing partners both made par to leave O'Malley one-under and Smail one-over.
Woods then showed his immense power on the course's second-longest hole, the par-five 500m 12th, when he bashed his drive 310m down the centre of the fairway.
But his putting woes didn't go away after he placed his iron shot almost pin-high to leave a 4m putt for eagle to finally get him under the card.
He slid the ball just to the right of the hole and had to settle for a tap-in birdie.
O'Malley, the 1995 champion, meanwhile sank his birdie putt to go two-under and a five-way share of the lead while Smail also made birdie to return to even par.
It was more of the same on perhaps the tournament's toughest hole, the par-four 408m 13th, as Woods showed his pinpoint iron play but struggled to convert into a birdie.
After a 300m drive he again sent his iron shot pin high but missed the putt to remain one-under after four holes.
Things got worse for Smail, who made a double-bogey to blow out to three-over while O'Malley made par to keep his nose in front of Woods at two-under.
The elusive one-putt didn't arrive for Woods on his fifth hole, the 137m par-three 14th, when he watched a long birdie attempt centimetres short to stay at one-under. It was his fifth straight tap-in after narrow misses.
Woods sank a pressure putt for par on the par-four 15th after having to chip from a difficult spot in sloping rough just off the green.
It left him one-under after six, with the leaders on three-under.
After a par on the par-three 16th the situation worsened when he dropped back to even with a three-putt on the tough par-four 17th.
He was in good position after a big tee shot and accurate iron to the back of the green, but he made the unthinkable three putts as he headed towards an unspectacular first nine.
- NZPA
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