Among others, government should review its procurement system to ensure that weapons and ammunition do not find their way into rebel hands as claimed by the junior military officers who led Sunday's mutiny, Economic Planning Secretary Romulo Neri said.

Reforms are "crucial to show government's sincerity in stamping out claims of graft and corruption in the military," he said in a statement.

More than 300 soldiers seized control of a commercial and residential building in the Makati financial district on Sunday, demanding President Gloria Arroyo and top officials resign.

Perceptions of political instability after the coup attempt has continued to dampen sentiment in Philippine financial markets, analysts said.

The rogue soldiers accused Arroyo of allegedly plotting to declare martial law to extend her term and the military of selling firearms and weapons to insurgent groups.

The rebels later agreed to return to barracks and face court martial with the government promising to investigate their claims. Arroyo has since created two bodies to probe the allegations and has accepted the resignation of the military's intelligence chief.

"These reforms are mandatory regardless of the outcome of the ongoing investigations," Neri said.

"Strengthening the domestic economy is also one way of correcting the negative impact and uncertainty as a result of Sunday's failed coup," he said.

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