MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC, N-30D, 2000-01-10

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC
N-30D, 2000-01-10

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<PAGE>

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND TWO WORLD TRADE CENTER NEW
INC. YORK, NEW YORK 10048
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1999

DEAR SHAREHOLDER:

Asian stock markets generated strong returns in the twelve-month period ended
October 31, 1999, supported by economic recovery, corporate restructuring and
positive domestic liquidity. While economic growth has been uneven across the
region, it has generally exceeded expectations, particularly in South Korea and
Japan. Over the past year, governments in Asia encouraged economic growth
through a combination of accommodative monetary and fiscal policies.

The strength of the Japanese yen has also been a strong positive influence on
the Asian markets. Toward the latter part of the period, interest rates bottomed
in a number of Asian countries, and the dominant force for performance at the
market level has probably shifted now from easy liquidity to growth.
Faster-growing companies -- often electronics exporters or telecom companies --
and companies actively implementing restructuring initiatives are now the
leading performers in Asia's markets.

PERFORMANCE

For the twelve-month period ended October 31, 1999, Morgan Stanley Dean Witter
Pacific Growth Fund's Class B shares posted a total return of 47.89 percent,
compared to 67.12 percent for the Lipper Pacific Region Funds Average and 25.33
percent for the Morgan Stanley Capital International (MSCI) World Index. For the
same period, the Fund's Class A, C and D shares posted total returns of 48.98
percent, 47.94 percent and 49.39, respectively. The performance of the Fund's
four share classes varies because each class has different expenses. (The total
return figures shown assume the reinvestment of all distributions and do not
reflect the deduction of any applicable sales charges.) The accompanying chart
compares the Fund's performance to that of the Lipper and MSCI indexes.

The Fund's underperformance relative to the Lipper average is attributable to
its having a lower weighting than the peer group in Japan overall and
specifically in small-cap Japanese stocks, high performers during the fiscal
year. Also hindering the Fund's performance was its larger-than-average
weighting in the Australian market, which struggled during the period.

<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1999, CONTINUED

JAPAN

The Japanese market rallied strongly during the fiscal year as a result of
strong corporate restructuring initiatives, government initiatives to support
the banking system and small companies, and positive GDP growth surprises. The
market enjoyed significant foreign-investor participation as foreigners
responded positively to restructuring. The Japanese government tried
unsuccessfully on several occasions to halt the yen's appreciation, fearing that
excessive strength could impair exports and slow economic recovery. The market
traded within a narrow range during the last quarter of the fiscal year,
possibly because of the currency's strength, but a strong yen keeps pressure on
companies to restructure, which, as noted, has helped U.S.-dollar-based returns.

The economic recovery and market rally in Japan has also benefited other markets
throughout Asia this year. The Japanese rally seems to have attracted some
additional foreign portfolio investment to other Asian markets. More
importantly, imports into Japan from other Asian countries have grown
significantly this year, as a result of increased outsourcing of production by
Japanese corporations and rising domestic demand in Japan.

SOUTH KOREA

South Korea had the strongest large market in Asia during the fiscal year. In
1998 the Korean government launched a sizable bank recapitalization program and
vigorously implemented an IMF stabilization program that painfully but quickly
eliminated Korea's macroeconomic imbalances. A subsequent aggressive easing of
monetary policy in addition to the bank program improved domestic liquidity. The
acceleration of global demand in early 1999 proved very positive for corporate
Korea, armed as it was with a very competitive exchange rate, a leaner cost
structure and substantial new capacity in many areas, including semiconductors
and a variety of other electronics products. Exports have since been very
strong, supporting the maintenance of a significant trade surplus even as
improving domestic demand draws more imports into the country.

Groups that have embraced restructuring, like Samsung and LG, have outperformed
the market. Daewoo, one of the largest business groups in Korea, did not
restructure and was subsequently unable to roll over its huge short-term debt in
July. This debt problem caused a notable correction in the market, but it
appears that a government-led initiative to support debt restructuring within
the context of the dismantling of the group will stabilize the situation.

2
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1999, CONTINUED

HONG KONG

The Hong Kong market has lagged the performance of most of the Asian markets, as
a reflection of its high real interest rates, sluggish property market and
relatively weak export performance from China. China's exports, often shipped
through Hong Kong's port, have accelerated over the past few months and could
potentially receive a boost if there is a successful conclusion to China's
efforts to enter the World Trade Organization.

TAIWAN

The Taiwanese market has lagged the overall region's performance over the past
year, despite very strong performance by its electronics sector. Wrangling with
China over Taiwan's diplomatic status and a devastating earthquake in September
restrained the market's performance.

AUSTRALIA

The Australian market has also trailed the region this year, in this case
largely because of rising interest rates. During the regional crisis in 1998 the
Australian market suffered a relatively small decline and its GDP growth
remained strong throughout. Consequently, Australia's market recovery in 1999
has been far more muted.

SINGAPORE

The Singapore market performed well during the fiscal year, due largely to
strong showings by electronics companies, banks and Singapore Airlines. The
economy has performed well, interest rates remain low and government efforts to
encourage restructuring at the corporate level have been generating some
successes.

LOOKING AHEAD

Morgan Stanley Dean Witter Investment Management, Inc. the Fund's sub-advisor,
continues to believe that the best way to drive future Fund performance is
through stock selection. The sub-advisor thus continues to focus its efforts on
identifying companies that are restructuring their businesses around the
principle of improving returns on equity. The sub-advisor believes Japanese
restructuring can provide opportunities there and in non-Japan Asia through
outsourcing. The Fund will continue to build significant positions in companies
geared toward the recovery in domestic consumption that has been occurring in
most Asian economies. The first year of economic recovery

3
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS OCTOBER 31, 1999, CONTINUED

has largely been driven by net exports, government spending and changes in
inventory but only limited recoveries in consumption. The sub-advisor expects
consumption to generate more of the growth next year.

We appreciate your ongoing support of Morgan Stanley Dean Witter Pacific Growth
Fund and look forward to continuing to serve your investment needs.

Very truly yours,

<TABLE>
<S> <C>
[SIGNATURE] [SIGNATURE]
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
CHAIRMAN OF THE BOARD PRESIDENT
</TABLE>

4
<PAGE>

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND
INC.
FUND PERFORMANCE OCTOBER 31, 1999

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
GROWTH OF $10,000 -- CLASS B SHARES FUND MSCI(4) LIPPER(5)
($ IN THOUSANDS)
<S> <C> <C> <C> <C>
November-1990 $10,000 $10,000 $10,000
October-1991 $11,754 $11,773 $11,582
October-1992 $12,913 $11,157 $11,054
October-1993 $20,162 $14,170 $16,059
October-1994 $22,317 $15,254 $17,871
October-1995 $20,387 $16,701 $16,266
October-1996 $20,999 $19,422 $17,084
October-1997 $14,486 $22,680 $13,903
October-1998 $11,173 $26,140 $10,923
October-1999 $16,524 (3) $32,653 $18,255
</TABLE>

PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. PERFORMANCE FOR CLASS
A, CLASS C, AND CLASS D SHARES WILL VARY FROM THE PERFORMANCE OF CLASS B
SHARES SHOWN ABOVE DUE TO DIFFERENCES IN SALES CHARGES AND EXPENSES.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
----------------------------------------------------------------------------------------------
CLASS B SHARES* CLASS A SHARES+
-------------------------------------------- ---------------------------------------------
PERIOD ENDED 10/31/99 PERIOD ENDED 10/31/99
------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
1 Year 47.89%(1) 42.89%(2) 1 Year 48.98%(1) 41.15%(2)
5 Years (5.83) (1) (6.18) (2) Since Inception (7/28/97) (11.07) (1) (13.17) (2)
Since Inception
(11/30/90) 5.79 (1) 5.79 (2)
</TABLE>

<TABLE>
<CAPTION>
CLASS C SHARES++ CLASS D SHARES#
--------------------------------------------- ---------------------------------------------
PERIOD ENDED 10/31/99 PERIOD ENDED 10/31/99
------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
1 Year 47.94%(1) 46.94%(2) 1 Year 49.39%(1)
Since Inception (7/28/97) (11.60) (1) (11.60) (2) Since Inception (7/28/97) (10.85) (1)
</TABLE>

- ------------------------

(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable sales charge. See the Fund's current prospectus for
complete details on fees and sales charges.
(3) Closing value assuming a complete redemption on October 31, 1999.
(4) The Morgan Stanley Capital International World Index (MSCI) measures
performance from a diverse range of global stock markets including the
U.S., Europe, Australia, New Zealand, and the Far East. The performance of
the Index is listed in U.S. dollars and assumes reinvestment of net
dividends. "Net dividends" reflects a reduction in dividends after taking
into account withholding of taxes by certain foreign countries represented
in the index. The Index does not take into account the Fund's expenses,
fees, or charges. The Index is unmanaged and should not be considered an
investment.
(5) The Lipper Pacific Region Funds Average tracks the performance of funds
which invest in equity securities whose primary trading markets or
operations are concentrated in the Western Pacific basin region or a single
country within the region, as reported by Lipper Inc.
* The maximum CDSC for Class B is 5.0%. The CDSC declines to 0% after six
years.
+ The maximum front-end sales charge for Class A is 5.25%.
++ The maximum CDSC for Class C shares is 1% for shares redeemed within one
year of purchase.
# Class D shares have no sales charge.

5
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1999

<TABLE>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS, BONDS, RIGHTS AND WARRANTS (93.3%)
AUSTRALIA (8.6%)
AIRLINES
746,000 Quantas Airways Ltd............................................................. $ 2,368,280
------------
ALCOHOLIC BEVERAGES
1,070,000 Foster's Brewing Group Ltd...................................................... 2,837,299
------------
BEVERAGES - NON-ALCOHOLIC
369,050 Coca-Cola Amatil Ltd............................................................ 1,136,382
------------
DIVERSIFIED COMMERCIAL SERVICES
87,400 Brambles Industries, Ltd........................................................ 2,452,131
------------
INTERNATIONAL BANKS
373,800 Commonwealth Bank of Australia.................................................. 6,111,757
299,050 National Australia Bank Ltd..................................................... 4,604,186
706,300 Westpac Banking Corp., Ltd...................................................... 4,521,340
------------
15,237,283
------------
MEDIA CONGLOMERATES
706,850 News Corporation Ltd............................................................ 5,099,575
------------
MULTI-SECTOR COMPANIES
532,250 Broken Hill Proprietary Co., Ltd................................................ 5,487,973
------------
OTHER METALS/MINERALS
487,800 Rio Tinto Ltd................................................................... 7,822,699
------------
OTHER TELECOMMUNICATIONS
568,400 Aapt Limited*................................................................... 1,833,394
1,138,250 Telstra Corp. Ltd............................................................... 5,776,582
559,500 Telstra Corporation Ltd......................................................... 1,790,448
------------
9,400,424
------------
PRECIOUS METALS
2,001,700 Normandy Mining Ltd............................................................. 1,515,443
------------
REAL ESTATE
197,100 Lend Lease Corporation Ltd...................................................... 2,262,502
------------
TELECOMMUNICATIONS
820,000 Macquarie Corporate Telecommunications Holdings Limited*........................ 902,513
------------
TOTAL AUSTRALIA................................................................. 56,522,504
------------
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>

CHINA (0.5%)
COAL MINING
2,994,000 Yanzhou Coal Mining Co. Ltd.*................................................... $ 992,412
------------
ELECTRIC UTILITIES
1,666,100 Huaneng Power International, Inc................................................ 493,278
------------
ELECTRONIC COMPONENTS
2,216,000 Great Wall Technology Co. *..................................................... 1,354,959
------------
MUTUAL FUNDS
100,000 Investment Co. of China** *..................................................... 566,000
------------

TOTAL CHINA..................................................................... 3,406,649
------------

HONG KONG (9.5%)
BROADCASTING
595,600 Television Broadcasts Ltd....................................................... 3,181,747
------------
CELLULAR TELEPHONE
1,289,900 China Telecom Ltd.*............................................................. 4,407,588
639,000 SmarTone Telecommunications Holdings Ltd........................................ 2,253,794
------------
6,661,382
------------
DIVERSIFIED MANUFACTURING
207,100 Johnson Electric Holdings Ltd................................................... 1,119,676
------------
INTERNATIONAL BANKS
470,800 Dao Heng Bank Group Ltd......................................................... 2,139,311
212,000 Wing Hang Bank Ltd.............................................................. 691,794
------------
2,831,105
------------
MULTI-SECTOR COMPANIES
1,227,900 Hutchison Whampoa, Ltd.......................................................... 12,328,789
575,300 New World Development Co., Ltd.................................................. 1,088,616
764,800 Swire Pacific Ltd. (Class A).................................................... 3,790,281
------------
17,207,686
------------
OTHER SPECIALTY STORES
527,000 Jardine International Motor Holdings Ltd........................................ 267,960
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1999, CONTINUED

<TABLE>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
OTHER TELECOMMUNICATIONS
488,000 Asia Satellite Telecommunications Holdings Ltd.................................. $ 1,149,566
------------
PACKAGE GOODS/COSMETICS
2,452,000 Hengan International Group Co. Ltd.............................................. 670,722
------------
REAL ESTATE
951,400 Cheung Kong (Holdings) Ltd...................................................... 8,634,061
386,000 Hong Kong Land Holdings Ltd..................................................... 497,940
457,000 Kerry Properties Ltd............................................................ 452,970
1,847,000 New World China Land Ltd.*...................................................... 855,918
1,131,000 Sino Land Co. Ltd............................................................... 516,837
744,400 Sun Hung Kai Properties Ltd..................................................... 6,012,885
------------
16,970,611
------------
SHOE MANUFACTURING
237,000 Yue Yuen Industrial Holdings.................................................... 601,004
------------
TELECOMMUNICATIONS
3,201,900 Cable & Wireless HKT Ltd........................................................ 7,315,920
------------
UTILITIES
433,300 CLP Holdings Ltd................................................................ 1,985,645
------------
WHOLESALE DISTRIBUTORS
1,368,400 Li & Fung Ltd................................................................... 2,377,988
------------
TOTAL HONG KONG................................................................. 62,341,012
------------
INDIA (4.2%)
ALUMINUM
35,000 Hindalco Industries Ltd......................................................... 581,457
------------
COMPUTER SOFTWARE
83,700 Aptech Limited.................................................................. 1,692,463
22,600 BFL Software Limited............................................................ 352,761
1,700 Leading Edge Systems Ltd........................................................ 14,961
25,000 NIIT Limited.................................................................... 1,243,968
86,300 Software Solution Integrated Ltd................................................ 1,865,801
------------
5,169,954
------------
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
CONSTRUCTION/AGRICULTURAL EQUIPMENT/TRUCKS
258,000 Larsen & Toubro Ltd............................................................. $ 2,360,060
39,600 Punjab Tractors Ltd............................................................. 940,273
------------
3,300,333
------------
DIVERSIFIED ELECTRONIC PRODUCTS
600 Satyam Computer Service Ltd..................................................... 17,537
43,200 Satyam Computer Service Ltd. (Bonus Shares)*.................................... 1,260,861
------------
1,278,398
------------
DIVERSIFIED MANUFACTURING
110,208 Grasim Industries Ltd........................................................... 1,069,286
27,693 Grasim Industries Ltd. (Bonus Shares)*.......................................... 264,397
------------
1,333,683
------------
E.D.P. SERVICES
1,700 Infosys Technologies Ltd........................................................ 271,406
6,400 Tata Infotech Limited........................................................... 78,544
------------
349,950
------------
ELECTRICAL PRODUCTS
333,233 Bharat Heavy Electricals Ltd.................................................... 2,052,078
------------
ELECTRONIC DATA PROCESSING
1,000 Digital Equipment (India) Ltd................................................... 13,511
------------
FINANCE COMPANIES
494,350 ICICI Limited................................................................... 897,372
------------
GENERIC DRUGS
30,200 Dr. Reddy's Laboratories Ltd.................................................... 739,040
------------
INTERNATIONAL BANKS
207,000 State Bank of India............................................................. 1,179,596
------------
MAJOR PHARMACEUTICALS
45,850 Hoechst Marion Roussel Ltd...................................................... 766,397
------------
MOTOR VEHICLES
51,500 Bajaj Auto Limited*............................................................. 521,272
49,200 Hero Honda Motors Ltd........................................................... 1,301,335
------------
1,822,607
------------
MOVIES/ENTERTAINMENT
900 Zee Telefilms Ltd............................................................... 91,362
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1999, CONTINUED

<TABLE>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
OIL REFINING/MARKETING
160,500 Hindustan Petroleum Corp. Ltd................................................... $ 589,889
------------
OTHER PHARMACEUTICALS
37,200 Glaxo (India) Limited........................................................... 631,682
1,800 Wockhardt Ltd................................................................... 23,766
------------
655,448
------------
OTHER TELECOMMUNICATIONS
270,000 Mahanagar Telephone Nigam Ltd................................................... 1,063,373
30,000 Videsh Sanchar Nigam Ltd........................................................ 908,203
------------
1,971,576
------------
PACKAGE GOODS/COSMETICS
21,800 Hindustan Lever Ltd............................................................. 1,152,665
------------
SPECIALTY CHEMICALS
635,000 Indo Gulf Corporation Ltd....................................................... 1,039,608
286,000 Reliance Industries Ltd......................................................... 1,534,818
------------
2,574,426
------------
TEXTILES
92,311 Indian Rayon & Industries Ltd................................................... 153,145
------------
TOBACCO
48,400 ITC Ltd......................................................................... 774,100
------------
TOTAL INDIA..................................................................... 27,446,987
------------

INDONESIA (0.6%)
BUILDING MATERIALS
415,100 PT Semen Gresik (Persero)....................................................... 739,302
------------
MUTUAL FUNDS
2,500,000 Batavia Investment Fund Ltd.*................................................... --
------------
PRECIOUS METALS
1,583,000 PT Aneka Tambang Tbk............................................................ 335,088
------------
SPECIALTY FOODS/CANDY
492,500 PT Indofood Sukses Makmur Tbk................................................... 582,372
------------
TELECOMMUNICATIONS
184,032 PT Telekomunikasi Indonesia (ADR)............................................... 1,690,794
------------
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
TOBACCO
311,000 PT Gudang Garam Tbk............................................................. $ 799,066
------------

TOTAL INDONESIA................................................................. 4,146,622
------------

JAPAN (43.5%)
BUILDING PRODUCTS
481,000 Sanwa Shutter Corp.............................................................. 2,077,853
JPY 80,000K Sanwa Shutter Corp. 0.90% due 03/31/06 (Conv.).................................. 763,368
------------
2,841,221
------------
CONSUMER ELECTRONICS/APPLIANCES
86,300 Aiwa Co., Ltd................................................................... 2,104,272
114,500 Rinnai Corp..................................................................... 2,434,650
87,100 Sony Corp....................................................................... 13,595,528
------------
18,134,450
------------
CONSUMER SPECIALTIES
365,000 Casio Computer Co., Ltd......................................................... 2,508,784
------------
DIVERSIFIED ELECTRONIC PRODUCTS
873,000 Hitachi Ltd..................................................................... 9,444,859
95,800 Kyocera Corp.................................................................... 9,196,506
402,000 Matsushita Electric Industrial Co., Ltd......................................... 8,470,673
656,000 NEC Corp........................................................................ 13,287,511
1,164,000 Toshiba Corp.................................................................... 7,330,172
------------
47,729,721
------------
E.D.P. PERIPHERALS
242,000 Mitsumi Electric Co., Ltd....................................................... 6,481,521
------------
ELECTRICAL PRODUCTS
600,000 Furukawa Electric Co............................................................ 4,377,460
------------
ELECTRONIC COMPONENTS
78,000 TDK Corp........................................................................ 7,645,003
------------
ELECTRONIC DATA PROCESSING
447,000 Fujitsu Ltd..................................................................... 13,473,937
------------
ELECTRONIC DISTRIBUTORS
143,000 Ryosan Co., Ltd................................................................. 3,493,664
------------
ENGINEERING & CONSTRUCTION
60,000 Kyudenko Co. Ltd................................................................ 247,672
------------
FINANCE COMPANIES
248,000 Hitachi Credit Corp............................................................. 5,011,424
------------
FOOD CHAINS
87,900 FamilyMart Co., Ltd............................................................. 6,117,644
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1999, CONTINUED

<TABLE>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
HOME BUILDING
505,000 Sekisui Chemical Co., Ltd....................................................... $ 2,486,944
454,000 Sekisui House Ltd............................................................... 4,920,476
------------
7,407,420
------------
HOME FURNISHINGS
46,000 Sangetsu Co., Ltd............................................................... 914,083
------------
INDUSTRIAL MACHINERY/COMPONENTS
394,000 Amada Co., Ltd.................................................................. 3,025,823
331,000 Daifuku Co., Ltd................................................................ 2,157,521
381,000 Daikin Industries, Ltd.......................................................... 4,206,105
192,000 Fuji Machine Manufacturing Co., Ltd............................................. 8,939,234
425,000 Minebea Co., Ltd................................................................ 5,732,217
JPY 19,000K Minebea Co., Ltd. 0.80% due 03/31/03 (Conv.).................................... 295,661
847,000 Mitsubishi Heavy Industries Ltd................................................. 3,325,554
395,000 Tsubakimoto Chain Co............................................................ 2,021,071
------------
29,703,186
------------
INDUSTRIAL SPECIALTIES
326,000 Fujitec Co., Ltd................................................................ 3,633,349
263,000 Lintec Corp..................................................................... 3,474,014
------------
7,107,363
------------
MAJOR PHARMACEUTICALS
278,000 Sankyo Co., Ltd................................................................. 7,926,082
------------
MOTOR VEHICLES
969,000 Nissan Motor Co., Ltd........................................................... 5,813,814
271,000 Suzuki Motor Corp............................................................... 4,120,803
142,000 Toyota Motor Corp............................................................... 4,920,995
------------
14,855,612
------------
OFFICE EQUIPMENT/SUPPLIES
258,000 Canon, Inc...................................................................... 7,306,326
JPY 91,000K Canon, Inc.
1.20% due 12/20/05
(Conv.)....................................................................... 1,683,373
JPY 45,000K Canon, Inc.
1.30% due 12/19/08
(Conv.)....................................................................... 824,662
538,000 Ricoh Co., Ltd.................................................................. 8,785,044
------------
18,599,405
------------
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
OTHER PHARMACEUTICALS
154,000 Ono Pharmaceutical Co., Ltd..................................................... $ 5,026,399
174,000 Yamanouchi Pharmaceutical Co., Ltd.............................................. 7,900,739
------------
12,927,138
------------
PHOTOGRAPHIC PRODUCTS
209,000 Fuji Photo Film Co.............................................................. 6,721,225
------------
POLLUTION CONTROL EQUIPMENT
149,000 Kurita Water Industries Ltd..................................................... 2,746,280
------------
PRINTING/FORMS
262,000 Dai Nippon Printing Co., Ltd.................................................... 4,781,242
147,000 Nissha Printing Co., Ltd........................................................ 1,017,443
------------
5,798,685
------------
REAL ESTATE
700 Chubu Sekiwa Real Estate, Ltd................................................... 5,813
304,000 Mitsubishi Estate Co., Ltd...................................................... 3,049,630
------------
3,055,443
------------
RECREATIONAL PRODUCTS/TOYS
71,400 Nintendo Co., Ltd............................................................... 11,343,669
338,000 Yamaha Corp..................................................................... 2,271,287
------------
13,614,956
------------
SEMICONDUCTORS
28,000 Rohm Co., Ltd................................................................... 6,289,719
------------
SPECIALTY CHEMICALS
674,000 Daicel Chemical Industries, Ltd................................................. 2,264,568
597,000 Kaneka Corp..................................................................... 7,822,838
612,000 Mitsubishi Chemical Corp........................................................ 2,778,881
262,000 NIFCO Inc....................................................................... 3,372,775
411,000 Shin-Etsu Polymer Co., Ltd...................................................... 2,643,467
------------
18,882,529
------------
TELECOMMUNICATIONS
702 Nippon Telegraph & Telephone Corp............................................... 10,782,375
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1999, CONTINUED

NEW ZEALAND (0.5%)
AIRLINES
755,800 Air New Zealand Ltd. (Class B).................................................. 1,117,593
------------
TELECOMMUNICATIONS
537,000 Telecom Corporation of New Zealand Ltd.......................................... 2,159,178
------------
TOTAL NEW ZEALAND............................................................... 3,276,771
------------

PHILIPPINES (0.4%)
ALCOHOLIC BEVERAGES
607,860 San Miguel Corp. (Class B)...................................................... 877,012
------------
BROADCASTING
682,500 ABS-CBN Broadcasting Corp.*..................................................... 747,015
------------
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
OTHER TELECOMMUNICATIONS
56,070 Philippine Long Distance Telephone Co........................................... $ 1,164,638
------------

TOTAL PHILIPPINES............................................................... 2,788,665
------------

SINGAPORE (5.3%)
AEROSPACE
1,322,000 Singapore Technologies Engineering Ltd.......................................... 1,916,979
------------
AIRLINES
429,000 Singapore Airlines Ltd.......................................................... 4,542,960
------------
DIVERSIFIED ELECTRONIC PRODUCTS
552,900 Natsteel Electronics Ltd........................................................ 2,162,365
------------
ELECTRONIC COMPONENTS
876,000 Gul Technologies................................................................ 801,155
863,000 Omni Industries Ltd............................................................. 820,421
446,100 Venture Manufacturing Ltd....................................................... 3,972,491
------------
5,594,067
------------
ELECTRONIC PRODUCTION EQUIPMENT
126,000 Chartered Semiconductor Manufacturing*.......................................... 252,363
31,400 Chartered Semiconductor Manufacturing (ADR)*.................................... 1,042,088
------------
1,294,451
------------
INTERNATIONAL BANKS
103,507 DBS Group Holdings Ltd.......................................................... 1,170,837
448,310 Overseas-Chinese Banking Corp. Ltd.............................................. 3,371,766
242,104 Overseas Union Bank Ltd......................................................... 1,048,826
290,600 United Overseas Bank Ltd........................................................ 2,203,105
------------
7,794,534
------------
MARINE TRANSPORTATION
697,000 Neptune Orient Lines Ltd........................................................ 1,010,692
351,600 Sembcorp Logistics Ltd.......................................................... 1,311,624
------------
2,322,316
------------
NEWSPAPERS
167,099 Singapore Press Holdings Ltd.................................................... 2,865,416
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1999, CONTINUED

TOTAL SINGAPORE................................................................. 34,998,494
------------
SOUTH KOREA (7.9%)
CELLULAR TELEPHONE
41,200 Pantech Co., Ltd................................................................ 460,067
136,100 Sk Telecom Co., Ltd. (ADR)...................................................... 1,777,806
------------
2,237,873
------------
COMPUTER SOFTWARE
47,000 Daeduck Electronics Co.......................................................... 532,667
------------
DIVERSIFIED ELECTRONIC PRODUCTS
124,739 Samsung Electronics Co.......................................................... 20,789,833
------------
ELECTRIC UTILITIES
341,000 Korea Electric Power Corp. (ADR)................................................ 5,370,750
------------
ELECTRONIC COMPONENTS
94,800 Mirae Co........................................................................ 508,760
30,198 Samsung Electro-Mechanics Co.................................................... 1,459,570
------------
1,968,330
------------
INDUSTRIAL SPECIALTIES
29,800 Hankuk Glass Industry Co. Ltd................................................... 558,750
------------
INTERNATIONAL BANKS
83,640 Hana Bank....................................................................... 766,700
53,200 Housing & Commercial Bank, Korea*............................................... 1,405,367
126,330 Kookmin Bank.................................................................... 1,968,642
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
7,346 Kookmin Bank (Rights)........................................................... $ 81,564
------------
4,222,273
------------
INVESTMENT BANKERS/BROKERS/SERVICES
32,910 Dongwon Securities Co........................................................... 987,300
146,550 Sangyong Investment & Securities Co., Ltd....................................... 891,512
------------
1,878,812
------------
MOTOR VEHICLES
364,000 Hyundai Motor Co., Ltd. (GDR) 144A*+............................................ 3,239,600
------------
PAINTS/COATINGS
11,110 Korea Chemical.................................................................. 740,667
------------
SEMICONDUCTORS
51,900 Hyundai Electronics Industries Co............................................... 862,837
------------
SPECIALTY CHEMICALS
51,110 L.G. Chemical Ltd............................................................... 1,546,078
------------
STEEL/IRON ORE
125,400 Pohang Iron & Steel Co., Ltd. (ADR)............................................. 4,185,225
------------
TELECOMMUNICATIONS
25,700 Korea Telecom Corp.............................................................. 1,728,325
53,835 Korea Telecom Corp. (ADR)....................................................... 1,897,684
------------
3,626,009
------------

TOTAL SOUTH KOREA............................................................... 51,759,704
------------

TAIWAN (8.1%)
DIVERSIFIED ELECTRONIC PRODUCTS
310,000 Delta Electronics, Inc.......................................................... 1,290,855
------------
E.D.P. PERIPHERALS
140,000 Acer Peripherals Inc............................................................ 371,779
56,304 Acer Peripherals Inc. - 144A*+.................................................. 1,494,871
------------
1,866,650
------------
ELECTRONIC COMPONENTS
326,000 Compeq Manufacturing Co., Ltd.*................................................. 1,659,711
19,000 Ritek Corp.*.................................................................... 124,199
93,100 Ritek Corp. (GDR)*.............................................................. 1,245,212
------------
3,029,122
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1999, CONTINUED

<TABLE>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ELECTRONIC DATA PROCESSING
345,000 Acer Inc.*...................................................................... $ 655,955
436,578 Asustek Computer Inc............................................................ 4,568,840
574,737 Compal Electronics.............................................................. 1,923,617
59,900 Hon Hai Precision Industry Co. (GDR)............................................ 971,877
629,400 Hon Hai Precison Industry Co.*.................................................. 4,292,263
114,000 Quanta Computer Inc............................................................. 931,490
------------
13,344,042
------------
ELECTRONIC PRODUCTION EQUIPMENT
2,178,173 Taiwan Semiconductor Manufacturing Co.*......................................... 9,651,866
------------
ENGINEERING & CONSTRUCTION
119,000 CTCI Corp....................................................................... 100,600
------------
FOOD CHAINS
227,000 President Chain Store Corp...................................................... 638,482
------------
INTERNATIONAL BANKS
1,006,200 China Trust Commercial Bank*.................................................... 920,189
584,970 E. Sun Commercial Bank*......................................................... 235,312
635,000 First Commercial Bank........................................................... 812,209
1,029,300 International Commercial Bank of China*......................................... 1,038,357
1,187,000 Taishin International Bank...................................................... 675,195
774,000 United World Chinese Commercial Bank*........................................... 977,838
------------
4,659,100
------------
LIFE INSURANCE
248,743 Cathay Life Insurance Co., Ltd.................................................. 641,010
------------
MARINE TRANSPORTATION
1,019,000 Evergreen Marine Corp........................................................... 951,109
------------
SEMICONDUCTORS
631,000 Advanced Semiconductor Engineering Inc.*........................................ 1,933,454
917,323 Siliconware Precision Industries Co.*........................................... 1,643,225
2,144,000 United Microelectronics Corp., Ltd.*............................................ 5,558,768
------------
9,135,447
------------
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SPECIALTY CHEMICALS
473,000 Formosa Plastic Corp............................................................ $ 943,919
896,680 Nan Ya Plastic.................................................................. 1,563,977
------------
2,507,896
------------
STEEL/IRON ORE
3,489,890 China Steel Corp................................................................ 2,676,094
------------
TEXTILES
1,109,910 Far East Textile Ltd............................................................ 1,513,831
67,100 Far East Textile Ltd. (GDS) 144A+............................................... 964,562
------------
2,478,393
------------

TOTAL TAIWAN.................................................................... 52,970,666
------------

THAILAND (1.3%)
BUILDING MATERIALS
200,433 Siam City Cement Co. PCL........................................................ 736,390
------------
CELLULAR TELEPHONE
190,200 Advanced Info Service PCL....................................................... 2,214,489
------------
ELECTRONIC COMPONENTS
156,975 Delta Electronics, Inc.......................................................... 1,283,418
------------
INTERNATIONAL BANKS
1,455,300 Siam Commercial Bank (Warrants due 06/22/04)*................................... 508,320
1,319,300 Thai Farmers Bank PCL........................................................... 1,860,332
------------
2,368,652
------------
MOVIES/ENTERTAINMENT
173,300 BEC World PCL................................................................... 1,058,184
------------
REAL ESTATE
2,168,600 Golden Land Property Development Company Ltd.*.................................. 841,630
------------
TOTAL THAILAND.................................................................. 8,502,763
------------
TOTAL COMMON STOCKS, BONDS, RIGHTS AND WARRANTS
(IDENTIFIED COST $489,591,091).................................................. 613,356,225
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1999, CONTINUED

<TABLE>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (a) (6.7%)
COMMERCIAL PAPER
DIVERSIFIED FINANCIAL SERVICES
350 General Electric Capital Corp. 5.31% due 11/17/99................................. $ 349,174
------------
U.S. GOVERNMENT AGENCY
44,000 Federal Home Loan Mortgage Corp. 5.16% due 11/01/99............................... 44,000,000
------------
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $44,349,174)...................................................... 44,349,174
------------
</TABLE>

<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $533,940,265) (b)........................................................ 100.0% 657,705,399

CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES............................................ 0.0 325,329
----- -------------
NET ASSETS................................................................................ 100.0% $ 658,030,728
----- -------------
----- -------------
</TABLE>

- ---------------------

ADR American Depository Receipt.
GDR Global Depository Receipt.
GDS Global Depository Share.
K In thousands.
* Non-income producing security.
** Partially paid shares. Resale is restricted to qualified institutional
investors.
+ Resale is restricted to qualified institutional investors.
(a) Securities were purchased on a discount basis. The interest rates shown
have been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $139,996,531 and the
aggregate gross unrealized depreciation is $16,231,397, resulting in net
unrealized appreciation of $123,765,134.

FORWARD FOREIGN CURRENCY CONTRACT OPEN AT OCTOBER 31, 1999:

<TABLE>
<CAPTION>
CONTRACT IN EXCHANGE DELIVERY UNREALIZED
TO DELIVER FOR DATE APPRECIATION
- -------------------------------------------------------------------
<S> <C> <C> <C>
HKD 502,141 $64,628 11/01/99 $ 10
</TABLE>

CURRENCY ABBREVIATIONS:

<TABLE>
<S> <C>
HKD Hong Kong Dollar.
JPY Japanese Yen.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
SUMMARY OF INVESTMENTS OCTOBER 31, 1999

<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Aerospace......................................................................... $ 1,916,979 0.3%
Airlines.......................................................................... 8,028,833 1.2
Alcoholic Beverages............................................................... 5,202,826 0.8
Aluminum.......................................................................... 581,457 0.1
Beverages - Non-Alcoholic......................................................... 1,136,382 0.2
Broadcasting...................................................................... 3,928,762 0.6
Building Materials................................................................ 1,475,692 0.2
Building Products................................................................. 2,841,221 0.4
Casino/Gambling................................................................... 1,791,343 0.3
Cellular Telephone................................................................ 11,113,744 1.7
Coal Mining....................................................................... 992,412 0.1
Computer Software................................................................. 5,702,621 0.9
Construction/Agricultural Equipment/Trucks........................................ 3,300,333 0.5
Consumer Electronics/Appliances................................................... 18,134,450 2.7
Consumer Specialties.............................................................. 2,508,784 0.4
Diversified Commercial Services................................................... 2,452,131 0.4
Diversified Electronic Products................................................... 73,251,172 11.1
Diversified Financial Services.................................................... 349,174 0.0
Diversified Manufacturing......................................................... 2,453,359 0.4
E.D.P. Peripherals................................................................ 8,348,171 1.3
E.D.P. Services................................................................... 349,950 0.0
Electric Utilities................................................................ 5,864,028 0.9
Electrical Products............................................................... 6,429,538 1.0
Electronic Components............................................................. 21,507,053 3.3
Electronic Data Processing........................................................ 26,831,490 4.1
Electronic Distributors........................................................... 3,493,664 0.5
Electronic Production Equipment................................................... 10,946,317 1.7
Engineering & Construction........................................................ 348,272 0.1
Finance Companies................................................................. 5,908,796 0.9
Food Chains....................................................................... 6,756,126 1.0
Generic Drugs..................................................................... 739,040 0.1
Home Building..................................................................... 7,407,420 1.1
Home Furnishings.................................................................. 914,083 0.1
Industrial Machinery/Components................................................... 29,703,186 4.5
Industrial Specialties............................................................ 7,666,113 1.2
International Banks............................................................... 44,850,543 6.9
Investment Bankers/Brokers/Services............................................... 1,878,812 0.3
Life Insurance.................................................................... 641,010 0.1
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Major Pharmaceuticals............................................................. $ 8,692,479 1.3%
Marine Transportation............................................................. 3,273,425 0.5
Media Conglomerates............................................................... 5,099,575 0.8
Motor Vehicles.................................................................... 19,917,819 3.0
Movies/Entertainment.............................................................. 1,149,546 0.2
Multi-Sector Companies............................................................ 22,695,659 3.4
Mutual Funds...................................................................... 566,000 0.1
Newspapers........................................................................ 2,865,416 0.4
Office Equipment/Supplies......................................................... 18,599,405 2.8
Oil Refining/Marketing............................................................ 589,889 0.1
Other Metals/Minerals............................................................. 7,822,699 1.2
Other Pharmaceuticals............................................................. 13,582,586 2.1
Other Specialty Stores............................................................ 267,960 0.0
Other Telecommunications.......................................................... 13,686,204 2.1
Package Goods/Cosmetics........................................................... 1,823,387 0.3
Paints/Coatings................................................................... 740,667 0.1
Photographic Products............................................................. 6,721,225 1.0
Pollution Control Equipment....................................................... 2,746,280 0.4
Precious Metals................................................................... 1,850,531 0.3
Printing/Forms.................................................................... 5,798,685 0.9
Real Estate....................................................................... 25,646,384 3.9
Recreational Products/Toys........................................................ 13,614,956 2.1
Semiconductors.................................................................... 16,288,003 2.5
Shoe Manufacturing................................................................ 601,004 0.1
Specialty Chemicals............................................................... 25,510,929 3.9
Specialty Foods/Candy............................................................. 582,372 0.1
Steel/Iron Ore.................................................................... 6,861,319 1.0
Telecommunications................................................................ 30,459,207 4.6
Textiles.......................................................................... 4,719,422 0.7
Tobacco........................................................................... 5,242,236 0.8
U.S. Government Agency............................................................ 44,000,000 6.7
Utilities......................................................................... 1,985,645 0.3
Wholesale Distributors............................................................ 5,959,198 0.9
------------ -----
$$657,705,399 100.0%
------------ -----
------------ -----
</TABLE>

<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Common Stocks..................................................................... $607,111,393 92.3%
Convertible Bonds................................................................. 5,654,948 0.9
Rights............................................................................ 81,564 0.0
Short-Term Investments............................................................ 44,349,174 6.7
Warrants.......................................................................... 508,320 0.1
------------ -----
$657,705,399 100.0%
------------ -----
------------ -----
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $533,940,265)............................................................. $ 657,705,399
Cash (including $2,206,945 in foreign currency).............................................. 2,866,790
Receivable for:
Capital stock sold....................................................................... 1,981,272
Dividends................................................................................ 947,569
Investments sold......................................................................... 825,585
Interest................................................................................. 255,736
Prepaid expenses and other assets............................................................ 304,079
-------------
TOTAL ASSETS............................................................................ 664,886,430
-------------
LIABILITIES:
Payable for:
Investments purchased.................................................................... 3,922,127
Capital stock repurchased................................................................ 1,484,090
Plan of distribution fee................................................................. 533,868
Investment management fee................................................................ 513,778
Accrued expenses and other payables.......................................................... 401,839
-------------
TOTAL LIABILITIES....................................................................... 6,855,702
-------------
NET ASSETS.............................................................................. $ 658,030,728
=============
COMPOSITION OF NET ASSETS:
Paid-in-capital.............................................................................. $ 951,192,965
Net unrealized appreciation.................................................................. 123,764,204
Dividends in excess of net investment income................................................. (1,503,849)
Accumulated net realized loss................................................................ (415,422,592)
-------------
NET ASSETS.............................................................................. $ 658,030,728
=============
CLASS A SHARES:
Net Assets................................................................................... $10,048,329
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE).................................. 690,948
NET ASSET VALUE PER SHARE............................................................... $14.54
=============

MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 5.54% OF NET ASSET VALUE)....................................... $15.35
=============
CLASS B SHARES:
Net Assets................................................................................... $633,215,508
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE).................................. 44,004,346
NET ASSET VALUE PER SHARE............................................................... $14.39
=============
CLASS C SHARES:
Net Assets................................................................................... $12,278,152
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE).................................. 853,574
NET ASSET VALUE PER SHARE............................................................... $14.38
=============
CLASS D SHARES:
Net Assets................................................................................... $2,488,739
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE).................................. 170,345
NET ASSET VALUE PER SHARE............................................................... $14.61
=============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1999

<TABLE>
<S> <C>
NET INVESTMENT LOSS:

INCOME
Dividends (net of $2,397,026 foreign withholding tax)......................................... $ 9,718,969
Interest (net of $2,177 foreign withholding tax).............................................. 1,281,162
------------

TOTAL INCOME............................................................................. 11,000,131
------------

EXPENSES
Plan of distribution fee (Class A shares)..................................................... 12,269
Plan of distribution fee (Class B shares)..................................................... 5,032,473
Plan of distribution fee (Class C shares)..................................................... 56,000
Investment management fee..................................................................... 4,907,485
Transfer agent fees and expenses.............................................................. 1,580,235
Custodian fees................................................................................ 1,063,945
Registration fees............................................................................. 161,968
Shareholder reports and notices............................................................... 153,278
Professional fees............................................................................. 133,931
Directors' fees and expenses.................................................................. 17,512
Other......................................................................................... 41,085
------------

TOTAL EXPENSES........................................................................... 13,160,181
------------

NET INVESTMENT LOSS...................................................................... (2,160,050)
------------

NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain/loss on:
Investments............................................................................... (4,333,878)
Foreign exchange transactions............................................................. 1,539,596
------------

NET LOSS................................................................................. (2,794,282)
------------
Net change in unrealized appreciation/depreciation on:
Investments............................................................................... 203,729,991
Translation of forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies....................................................... 1,572,236
------------

NET APPRECIATION......................................................................... 205,302,227
------------

NET GAIN................................................................................. 202,507,945
------------

NET INCREASE.................................................................................. $200,347,895
============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 1999 OCTOBER 31, 1998
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss)................... $ (2,160,050) $ 725,159
Net realized loss.............................. (2,794,282) (275,477,997)
Net change in unrealized appreciation.......... 205,302,227 121,134,260
------------ -------------

NET INCREASE (DECREASE)................... 200,347,895 (153,618,578)
------------ -------------

DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A shares................................. -- (18,402)
Class B shares................................. -- (10,272,862)
Class C shares................................. -- (13,025)
Class D shares................................. -- (17,046)
------------ -------------

TOTAL DIVIDENDS........................... -- (10,321,335)
------------ -------------

Net increase (decrease) from capital stock
transactions................................. 42,445,104 (166,513,928)
------------ -------------

NET INCREASE (DECREASE)................... 242,792,999 (330,453,841)

NET ASSETS:
Beginning of period............................ 415,237,729 745,691,570
------------ -------------

END OF PERIOD
(INCLUDING DIVIDENDS IN EXCESS OF NET
INVESTMENT INCOME OF $1,503,849 AND
$2,863,488, RESPECTIVELY).................. $658,030,728 $ 415,237,729
============ =============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1999

1. ORGANIZATION AND ACCOUNTING POLICIES

Morgan Stanley Dean Witter Pacific Growth Fund Inc. (the "Fund") is registered
under the Investment Company Act of 1940, as amended (the "Act"), as a
diversified, open-end management investment company. The Fund's investment
objective is to maximize capital appreciation of its investments. The Fund was
incorporated in Maryland on June 13, 1990 and commenced operations on November
30, 1990. On July 28, 1997, the Fund converted to a multiple class share
structure.

The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase and some
Class A shares, and most Class B shares and Class C shares are subject to a
contingent deferred sales charge imposed on shares redeemed within one year, six
years and one year, respectively. Class D shares are not subject to a sales
charge. Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.

The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect reported amounts and disclosures. Actual results could differ from those
estimates.

The following is a summary of significant accounting policies:

A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York, American or other domestic or foreign stock exchange is valued at its
latest sale price on that exchange prior to the time when assets are valued; if
there were no sales that day, the security is valued at the latest bid price (in
cases where securities are traded on more than one exchange, the securities are
valued on the exchange designated as the primary market pursuant to procedures
adopted by the Directors); (2) listed options are valued at the latest sale
price on the exchange on which they are listed unless no sales of such options
have taken place that day, in which case they are valued at the mean between
their latest bid and asked price; (3) all other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest available bid price prior to the time of valuation; (4) when market
quotations are not readily available, including circumstances under which it is
determined by Morgan Stanley Dean Witter Advisors Inc. (the "Investment
Manager") or Morgan Stanley Dean Witter Investment Management Inc. (the
"Sub-Advisor") that sale and bid prices are not reflective of a security's
market value, portfolio securities are valued at their fair value as determined
in good faith under procedures established by and under the general supervision
of the Directors (valuation of debt securities for which market quotations are
not readily available may be based upon current market prices of securities
which are comparable in coupon, rating and maturity or an appropriate matrix
utilizing similar factors); and (5) short-term debt securities having a maturity
date of more than sixty days at the time of purchase are valued on a
mark-to-market basis

18
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1999, CONTINUED

until sixty days prior to maturity and thereafter at amortized cost based on
their value on the 61st day. Short-term debt securities having a maturity date
of sixty days or less at the time of purchase are valued at amortized cost.

B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Dividend income and other distributions are recorded on the ex-dividend date
except for certain dividends from foreign securities which are recorded as soon
as the Fund is informed after the ex-dividend date. Discounts are accreted over
the life of the respective securities. Interest income is accrued daily.

C. MULTIPLE CLASS ALLOCATIONS -- Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date such
items are recognized. Distribution fees are charged directly to the respective
class.

D. OPTION ACCOUNTING PRINCIPLES -- When the Fund writes a call option, an
amount equal to the premium received is included in the Fund's Statement of
Assets and Liabilities as a liability which is subsequently marked-to-market to
reflect the current market value of the option written. If a written option
either expires or the Fund enters into a closing purchase transaction, the Fund
realizes a gain or loss without regard to any unrealized gain or loss on the
underlying security or currency and the liability related to such option is
extinguished. If a written call option is exercised, the Fund realizes a gain or
loss from the sale of the underlying security or currency and the proceeds from
such sale are increased by the premium originally received.

When the Fund purchases a call or put option, the premium paid is recorded as an
investment which is subsequently marked-to-market to reflect the current market
value. If a purchased option expires, the Fund will realize a loss to the extent
of the premium paid. If the Fund enters into a closing sale transaction, a gain
or loss is realized for the difference between the proceeds from the sale and
the cost of the option. If a put option is exercised, the cost of the security
or currency sold upon exercise will be increased by the premium originally paid.
If a call option is exercised, the cost of the security purchased upon exercise
will be increased by the premium originally paid.

E. FOREIGN CURRENCY TRANSLATION -- The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities, other assets and liabilities and forward foreign currency
contracts are translated at the exchange rates prevailing at the end of the
period; and (2) purchases, sales, income and expenses are translated at the
exchange rates prevailing on the respective dates of such transactions. The
resultant exchange gains and losses are included in the Statement of Operations
as realized and unrealized gain/loss on foreign exchange transactions. Pursuant
to U.S. Federal income tax regulations, certain foreign exchange gains/losses

19
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1999, CONTINUED

included in realized and unrealized gain/loss are included in or are a reduction
of ordinary income for federal income tax purposes. The Fund does not isolate
that portion of the results of operations arising as a result of changes in the
foreign exchange rates from the changes in the market prices of the securities.

F. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund may enter into forward
foreign currency contracts which are valued daily at the appropriate exchange
rates. The resultant unrealized exchange gains and losses are included in the
Statement of Operations as unrealized gain/loss on foreign exchange
transactions. The Fund records realized gains or losses on delivery of the
currency or at the time the forward contract is extinguished (compensated) by
entering into a closing transaction prior to delivery.

G. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.

H. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends
and distributions to its shareholders on the record date. The amount of
dividends and distributions from net investment income and net realized capital
gains are determined in accordance with federal income tax regulations which may
differ from generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the capital accounts based on their federal tax-basis treatment;
temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in excess of net
realized capital gains. To the extent they exceed net investment income and net
realized capital gains for tax purposes, they are reported as distributions of
paid-in-capital.

2. INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS

Pursuant to an Investment Management Agreement, the Fund pays the Investment
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined as of the close
of each business day: 0.95% to the portion of daily net assets not exceeding $1
billion; 0.90% to the portion of daily net assets exceeding $1 billion but not
exceeding $2 billion; and 0.85% to the portion of daily net assets in excess of
$2 billion.

Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of

20
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1999, CONTINUED

all personnel, including officers of the Fund who are employees of the
Investment Manager. The Investment Manager also bears the cost of telephone
services, heat, light, power and other utilities provided to the Fund.

Under a Sub-Advisory Agreement between the Sub-Advisor and the Investment
Manager, the Sub-Advisor provides the Fund with investment advice and portfolio
management relating to the Fund's investments in securities, subject to the
overall supervision of the Investment Manager. As compensation for its services
provided pursuant to the Sub-Advisory Agreement, the Investment Manager pays the
Sub-Advisor monthly compensation equal to 40% of its monthly compensation.

3. PLAN OF DISTRIBUTION

Shares of the Fund are distributed by Morgan Stanley Dean Witter Distributors
Inc. (the "Distributor"), an affiliate of the Investment Manager and
Sub-Advisor. The Fund has adopted a Plan of Distribution (the "Plan") pursuant
to Rule 12b-1 under the Act. The Plan provides that the Fund will pay the
Distributor a fee which is accrued daily and paid monthly at the following
annual rates: (i) Class A - up to 0.25% of the average daily net assets of Class
A; (ii) Class B - 1.0% of the lesser of: (a) the average daily aggregate gross
sales of the Class B shares since the inception of the Fund (not including
reinvestment of dividend or capital gain distributions) less the average daily
aggregate net asset value of the Class B shares redeemed since the Fund's
inception upon which a contingent deferred sales charge has been imposed or
waived; or (b) the average daily net assets of Class B; and (iii) Class C - up
to 1.0% of the average daily net assets of Class C. In the case of Class A
shares, amounts paid under the Plan are paid to the Distributor for services
provided. In the case of Class B and Class C shares, amounts paid under the Plan
are paid to the Distributor for (1) services provided and the expenses borne by
it and others in the distribution of the shares of these Classes, including the
payment of commissions for sales of these Classes and incentive compensation to,
and expenses of, the Morgan Stanley Dean Witter Financial Advisors and others
who engage in or support distribution of the shares or who service shareholder
accounts, including overhead and telephone expenses; (2) printing and
distribution of prospectuses and reports used in connection with the offering of
these shares to other than current shareholders; and (3) preparation, printing
and distribution of sales literature and advertising materials. In addition, the
Distributor may utilize fees paid pursuant to the Plan, in the case of Class B
shares, to compensate Dean Witter Reynolds Inc. ("DWR"), an affiliate of the
Investment Manager, Sub-Advisor and Distributor, and other selected
broker-dealers for their opportunity costs in advancing such amounts, which
compensation would be in the form of a carrying charge on any unreimbursed
expenses.

In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund pursuant
to the Plan and contingent deferred sales charges paid by investors upon
redemption of Class B shares. Although there is no legal obligation for the Fund
to

21
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1999, CONTINUED

pay expenses incurred in excess of payments made to the Distributor under the
Plan and the proceeds of contingent deferred sales charges paid by investors
upon redemption of shares, if for any reason the Plan is terminated, the
Directors will consider at that time the manner in which to treat such expenses.
The Distributor has advised the Fund that such excess amounts, including
carrying charges, totaled $39,835,429 at October 31, 1999.

In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 1.0% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except that expenses representing
a gross sales credit to Morgan Stanley Dean Witter Financial Advisors or other
selected broker-dealer representatives may be reimbursed in the subsequent
calendar year. For the year ended October 31, 1999, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.23% and
1.0%, respectively.

The Distributor has informed the Fund that for the year ended October 31, 1999,
it received contingent deferred sales charges from certain redemptions of the
Fund's Class A shares, Class B shares and Class C shares of $567, $803,088, and
$4,110, respectively and received $46,260 in front-end sales charges from sales
of the Fund's Class A shares. The respective shareholders pay such charges which
are not an expense of the Fund.

4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES

The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the year ended October 31, 1999 aggregated
$653,834,234 and $625,737,502, respectively.

For the year ended October 31, 1999, the Fund incurred brokerage commissions of
$202,915 with Morgan Stanley & Co., Inc., an affiliate of the Investment
Manager, Sub-Advisor and Distributor, for portfolio transactions executed on
behalf of the Fund.

Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager,
Sub-Advisor and Distributor, is the Fund's transfer agent. At October 31, 1999,
the Fund had transfer agent fees and expenses payable of approximately $1,100.

The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Directors of the Fund who will have served as independent
Directors for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the year ended October 31, 1999 included
in Directors' fees and expenses in the Statement of Operations, amounted to
$5,779. At October 31, 1999, the Fund had an accrued pension liability of
$43,783 which is included in accrued expenses in the Statement of Assets and
Liabilities.

22
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1999, CONTINUED

5. FEDERAL INCOME TAX STATUS

At October 31, 1999, the Fund had a net capital loss carryover of approximately
$411,419,000, which may be used to offset future capital gains to the extent
provided by regulations, which is available through October 31 of the following
years:

<TABLE>
<CAPTION>
AMOUNT IN THOUSANDS
--------------------------------------------------------------------
2003 2004 2005 2006 2007
----------- -------------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
$ 3,193 $ 15,875 $ 97,593 $ 268,352 $ 26,406
========== ============= ========== =========== ===========
</TABLE>

As of October 31, 1999, the Fund had temporary book/tax differences primarily
attributable to the mark-to-market of passive foreign investment companies
("PFICs") and capital loss deferrals on wash sales and permanent book/tax
differences primarily attributable to foreign currency gains and tax adjustments
on PFICs sold by the Fund. To reflect reclassifications arising from the
permanent differences, accumulated net realized loss was charged $3,557,026,
paid-in-capital was credited $37,337, and dividends in excess of net investment
income was credited $3,519,689.

6. CAPITAL STOCK

Transactions in capital stock were as follows:

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 1999 OCTOBER 31, 1998
--------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold............................................................. 11,093,708 $ 142,833,100 418,160 $ 4,158,089
Reinvestment of dividends........................................ -- -- 1,152 13,083
Redeemed......................................................... (10,720,515) (138,982,563) (149,951) (1,337,917)
----------- ------------- ----------- -------------
Net increase - Class A........................................... 373,193 3,850,537 269,361 2,833,255
----------- ------------- ----------- -------------
CLASS B SHARES
Sold............................................................. 55,220,630 690,811,299 37,286,227 384,246,449
Reinvestment of dividends........................................ -- -- 840,396 9,572,097
Redeemed......................................................... (53,251,271) (659,859,432) (54,083,073) (565,173,912)
----------- ------------- ----------- -------------
Net increase (decrease) - Class B................................ 1,969,359 30,951,867 (15,956,450) (171,355,366)
----------- ------------- ----------- -------------
CLASS C SHARES
Sold............................................................. 4,233,781 53,863,013 1,140,153 10,725,985
Reinvestment of dividends........................................ -- -- 1,046 11,869
Redeemed......................................................... (3,542,876) (45,346,907) (1,042,383) (10,154,217)
----------- ------------- ----------- -------------
Net increase - Class C........................................... 690,905 8,516,106 98,816 583,637
----------- ------------- ----------- -------------
CLASS D SHARES
Sold............................................................. 7,250,183 89,995,532 612,447 5,857,456
Reinvestment of dividends........................................ -- -- 222 2,523
Redeemed......................................................... (7,239,889) (90,868,938) (461,755) (4,435,433)
----------- ------------- ----------- -------------
Net increase (decrease) - Class D................................ 10,294 (873,406) 150,914 1,424,546
----------- ------------- ----------- -------------
Net increase (decrease) in Fund.................................. 3,043,751 $ 42,445,104 (15,437,359) $(166,513,928)
=========== ============= =========== =============
</TABLE>

23
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1999, CONTINUED

7. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS

The Fund may enter into forward foreign currency contracts ("forward contracts")
to facilitate settlement of foreign currency denominated portfolio transactions
or to manage foreign currency exposure associated with foreign currency
denominated securities.

Forward contracts involve elements of market risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. The Fund bears the risk of
an unfavorable change in the foreign exchange rates underlying the forward
contracts. Risks may also arise upon entering into these contracts from the
potential inability of the counterparties to meet the terms of their contracts.

At October 31, 1999, there was an outstanding forward contract used to
facilitate settlement of foreign currency denominated portfolio transactions.

At October 31, 1999, the Fund's cash balance consisted principally of interest
bearing deposits with Chase Manhattan Bank N.A., the Fund's custodian.

At October 31, 1999, investments in securities of issuers in Japan represented
43.5% of the Fund's net assets. These investments, as well as other non-U.S.
investments, which involve risks and considerations not present with respect to
U.S. securities, may be affected by economic or political developments in this
region.

24
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL HIGHLIGHTS

Selected ratios and per share data for a share of capital stock outstanding
throughout each period:

<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR JULY 28, 1997*
ENDED ENDED THROUGH
OCTOBER 31, 1999 OCTOBER 31, 1998 OCTOBER 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.................................. $ 9.76 $ 12.86 $ 19.39
------- ------- -------
Income (loss) from investment operations:
Net investment income.............................................. 0.05 0.10 --
Net realized and unrealized gain (loss)............................ 4.73 (2.94) (6.53)
------- ------- -------
Total income (loss) from investment operations........................ 4.78 (2.84) (6.53)
------- ------- -------
Less dividends from net investment income............................. -- (0.26) --
------- ------- -------
Net asset value, end of period........................................ $ 14.54 $ 9.76 $ 12.86
======= ======= =======
TOTAL RETURN+......................................................... 48.98% (22.35)% (33.68)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.79%(3) 1.90 %(3) 1.92 %(2)
Net investment income (loss).......................................... 0.34%(3) 0.89 %(3) (0.03)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $10,048 $3,102 $622
Portfolio turnover rate............................................... 128% 58 % 42 %
</TABLE>

- ---------------------

* The date shares were first issued.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE YEAR ENDED OCTOBER 31
----------------------------------------------------------------
1999++ 1998++ 1997*++ 1996 1995
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
SELECTED PER
SHARE DATA:
Net asset value,
beginning of
period.......... $ 9.73 $ 12.83 $ 18.89 $ 18.77 $ 21.60
------- ------- ------- ------- -------
Income (loss)
from investment
operations:
Net investment
income
(loss)........ (0.06) 0.01 0.01 0.05 0.08
Net realized
and unrealized
gain (loss)... 4.72 (2.92) (5.77) 0.50 (1.94)
------- ------- ------- ------- -------
Total income
(loss) from
investment
operations...... 4.66 (2.91) (5.76) 0.55 (1.86)
------- ------- ------- ------- -------
Less dividends
and
distributions
from:
Net investment
income........ -- (0.19) (0.30) (0.43) --
Net realized
gain.......... -- -- -- -- (0.97)
------- ------- ------- ------- -------
Total dividends
and
distributions... -- (0.19) (0.30) (0.43) (0.97)
------- ------- ------- ------- -------
Net asset value,
end of period... $ 14.39 $ 9.73 $ 12.83 $ 18.89 $ 18.77
======= ======= ======= ======= =======
TOTAL RETURN+.... 47.89 % (22.87)% (31.01)% 3.00% (8.65)%
RATIOS TO AVERAGE
NET ASSETS:
Expenses......... 2.56 %(1) 2.65 %(1) 2.44 % 2.39% 2.45 %
Net investment
income (loss)... (0.43)%(1) 0.14 %(1) 0.03 % 0.18% 0.35 %
SUPPLEMENTAL
DATA:
Net assets, end
of period, in
thousands....... $633,216 $408,990 $744,133 $1,624,468 $1,441,549
Portfolio
turnover rate... 128 % 58 % 42 % 49% 50 %
</TABLE>

- ---------------------

* Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date have been designated Class B shares.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
(1) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR JULY 28, 1997*
ENDED ENDED THROUGH
OCTOBER 31, 1999 OCTOBER 31, 1998 OCTOBER 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS C SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.................................. $ 9.72 $12.83 $19.39
------- ------- -------
Income (loss) from investment operations:
Net investment income (loss)....................................... (0.05) 0.01 (0.04)
Net realized and unrealized gain (loss)............................ 4.71 (2.89) (6.52)
------- ------- -------
Total income (loss) from investment operations........................ 4.66 (2.88) (6.56)
------- ------- -------
Less dividends from net investment income............................. -- (0.23) --
------- ------- -------
Net asset value, end of period........................................ $ 14.38 $ 9.72 $12.83
======= ======= =======
TOTAL RETURN.+........................................................ 47.94 % (22.68)% (33.83)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 2.56 %(3) 2.65 %(3) 2.62 %(2)
Net investment income (loss).......................................... (0.43)%(3) 0.14 %(3) (0.77)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $12,278 $1,581 $819
Portfolio turnover rate............................................... 128 % 58 % 42 %
</TABLE>

- ---------------------

SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR FOR THE YEAR JULY 28, 1997*
ENDED ENDED THROUGH
OCTOBER 31, 1999 OCTOBER 31, 1998 OCTOBER 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS D SHARES ++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.................................. $ 9.78 $ 12.86 $ 19.39
------- ------- -------
Income (loss) from investment operations:
Net investment income.............................................. 0.06 0.07 0.02
Net realized and unrealized gain (loss)............................ 4.77 (2.88) (6.55)
------- ------- -------
Total income (loss) from investment operations........................ 4.83 (2.81) (6.53)
------- ------- -------
Less dividends from net investment income............................. -- (0.27) --
------- ------- -------
Net asset value, end of period........................................ $ 14.61 $ 9.78 $ 12.86
======= ======= =======
TOTAL RETURN.+........................................................ 49.39% (22.14)% (33.68)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.56%(3) 1.65 %(3) 1.62 %(2)
Net investment income................................................. 0.57%(3) 1.14 %(3) 0.42 %(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $2,489 $1,565 $118
Portfolio turnover rate............................................... 128% 58 % 42 %
</TABLE>

- ---------------------

* The date shares were first issued.
+ Calculated based on the net asset value as of the last business day of the
period.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
28
<PAGE>

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND
INC.
REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
OF MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.

In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Morgan Stanley Dean Witter Pacific
Growth Fund Inc. (the "Fund") at October 31, 1999, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended and the financial highlights for each of the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
October 31, 1999 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.

PricewaterhouseCoopers LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
DECEMBER 20, 1999

29
<PAGE>

DIRECTORS

Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder

OFFICERS

Charles A. Fiumefreddo
Chairman and Chief Executive Officer

Mitchell M. Merin
President

Barry Fink
Vice President, Secretary and General Counsel

Thomas F. Caloia
Treasurer

TRANSFER AGENT

Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311

INDEPENDENT ACCOUNTANTS

PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036

INVESTMENT MANAGER

Morgan Stanley Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048

SUB-ADVISOR

Morgan Stanley Dean Witter
Investment Management Inc.
1221 Avenue of the Americas
New York, New York 10020

This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and
directors, fees, expenses and other pertinent information, please see the
prospectus of the Fund.

This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus. Read the
prospectus carefully before investing.

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND

[GRAPHIC]

ANNUAL REPORT
OCTOBER 31, 1999