and projects that perception onto others. He also has contempt for others, maybe as a compensation for his feeling of inadequacy. By getting emotional, his fear is off-loaded as anger toward others. All the above take place unconsciously.
Respect him as an individual, and require him to do the same toward others. Let him know that he must take responsibility for his conducts, and only then he can know the responsibilities of others. He needs to be told about boundaries and to focus on bettering himself.
Remind the sister not to ridicule, belittle, or get physical with him. Not let all the praises go to her. He needs acknowledgement for his accomplishment, big and small.
Ask him to do things for himself. Ask him what he can do for others, material wise or spiriually (e.g., bring happiness to someone.) Ask him to observe and tell you about it. Tell him to use himself as a reference point, rather than experiencing himself through others (OK, he may not know what a reference point is, but you get the drift.)