Raj had rounds of 73, 70, 67 in the first three rounds.
Fellow Indian, Feroz Singh Garewal (73, 70, 70, 71) was four-under 284 and Tied-31 while the third Indian, Samarth Dwivedi failed to make the halfway cut.
American rookie Nick Sherwood beat Order of Merit leader Pavit Tangkamolprasert of Thailand by one shot to claim his maiden Asian Development Tour (ADT) victory at the PGM Penang Championship on Saturday.
Sherwood, who started the day two shots back, fired a superb 10-under-par 62 highlighted by 10 birdies for a winning total of 22-under-par 266 at the Penang Golf Club.
O'Toole closed with a 67 to settle for third place on 270 while Sweden's Oscar Zetterwall finished two shots back in fourth following a 66.
Local star Danny Chia returned with a 65 to emerge as the highest-placed Malaysian in fifth place on 274 alongside overnight co-leader Adam Blyth of Australia, who carded a 72.