The 24-year-old Swiss, who is using the invitational eight-man Kooyong Classic as final preparation for next week's Australian Open, said his game just needed minor improvements to maintain to the number one ranking he has held for almost two years.
"I don't need to set the bar higher...because I'm good enough to stay at this level," Federer told reporters when asked what standards he set himself. "I just need to enjoy it and stay hungry for wins. That isn't a problem."
Federer begins the talent-laden Kooyong Classic with a match against Germany's Tommy Haas on Wednesday, before world number three Andy Roddick plays rising French player Gael Monfils.
19-year-old Monfils lost the Qatar Open final in Doha last Saturday to the world number one.
Monfils held a 3-1 lead in the first set before losing 6-3 7-6 and said the experience had been good for him.
"Hopefully next time I will take a set or the match," the Frenchman said, although he remained stoically non-committal
"Don't say anything," Federer shot back.
"No, speak up," replied Roddick to loud laughter.
World number eight Guillermo Coria faces number nine Ivan Ljubicic and number five David Nalbandian meets Nicolas Kiefer.
Kiefer was a late addition to the tournament after Andre Agassi pulled out with an ankle injury.
To prove his dominance of tennis over the past two years Federer won three grand slam titles in 2004 and the Masters Cup.
Last year he won Kooyong, the Wimbledon and U.S. Open titles and nine other ATP tour titles before losing to Nalbandian in the final of the Masters Cup in Shanghai.
That loss, in five sets, may have cemented in Federer's mind that he still needs to make small changes to his game.
"I think my game is improving a little bit, just slightly because I don't want to go away from my game plan," he said.
"I think I have to keep improving because the other guys are improving too and they want to beat you.
"You have to always be ready for that."
Photograph: AFP/Getty Images