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Police detained two protesters.

Dozens of riot police surrounded parliament, about one km (half mile) from the square, where Mahathir was to present the budget at 4 p.m. (0800 GMT).

Earlier on Friday, several hundred protesters shouted ``Reformasi'' (Reform), the slogan adopted by supporters of detained former finance minister Anwar Ibrahim, outside the national mosque before dispersing.

Police have detained more than 260 people in sporadic demonstrations in the capital since Anwar was sacked on September 2. Anwar is in detention awaiting trial on 10 counts of sodomy and corruption. He has pleaded not guilty.

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