UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-07562

Morgan Stanley New York Quality Municipal Securities
(Exact name of registrant as specified in charter)

1221 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices) (Zip code)

Ronald E. Robison
1221 Avenue of the Americas, New York, New York 10020
(Name and address of agent for service)

Registrant's telephone number, including area code: 212-762-4000

Date of fiscal year end: October 31, 2006

Date of reporting period: April 30, 2006

Item 1 - Report to Shareholders

Welcome, Shareholder:

In this report, you'll learn about how your investment in Morgan Stanley New
York Quality Municipal Securities performed during the semiannual period. We
will provide an overview of the market conditions, and discuss some of the
factors that affected performance during the reporting period. In addition, this
report includes the Trust's financial statements and a list of Trust
investments.

MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO PASS. THERE
IS NO ASSURANCE THAT THE TRUST WILL ACHIEVE ITS INVESTMENT OBJECTIVE. THE TRUST
IS SUBJECT TO MARKET RISK, WHICH IS THE POSSIBILITY THAT MARKET VALUES OF
SECURITIES OWNED BY THE TRUST WILL DECLINE AND, THEREFORE, THE VALUE OF THE
TRUST'S SHARES MAY BE LESS THAN WHAT YOU PAID FOR THEM. ACCORDINGLY, YOU CAN
LOSE MONEY INVESTING IN THIS TRUST.

FUND REPORT

For the six months ended April 30, 2006

MARKET CONDITIONS

The U.S. economy navigated a number of challenges and continued to grow during
the reporting period, with particular strong expansion in 2006. Although the
Gulf Coast hurricanes resulted in unprecedented devastation, the negative impact
on the economy was less far-reaching than many had originally anticipated. Even
sharply higher energy prices failed to interrupt the positive economic momentum.

In 2006, developing weakness in the real estate sector and elevated commodity
prices weighed on sentiment. Yet, strong manufacturing surveys, buoyant consumer
confidence and positive employment data pointed toward steady growth in real
gross domestic product. While sustained higher energy costs began to push some
prices upward, headline measures of inflation remained largely stable.

Given the economy's solid growth, the Federal Open Market Committee (the "Fed")
continued to raise the federal funds target rate. Through four increases of 25
basis points each, the Fed brought the rate from 3.75 percent to 4.75 percent
during the period. Yields on short-term municipal bonds followed the target rate
and rose steadily. In contrast, the yields of long-term bonds initially declined
before moving higher in April. Representative yields on 30-year AAA rated
municipal bonds declined from 4.60 percent in October 2005 to a low of 4.30
percent in February, before ending the period at 4.55 percent. Accordingly, the
slope of the municipal yield curve continued to flatten as the difference
between short-term and long-term interest rates narrowed. In this environment,
the benefits of leveraged investment strategies were less pronounced. (Leverage
involves borrowing at short-term rates to purchase longer-term securities,
thereby taking advantage of the differential between short- and long-term
yields.)

Investors' quest for yield favored lower-quality bonds over high-grade issues
and kept credit spreads relatively tight. (Credit spreads measure the
incremental yield investors require to assume additional credit risk. When
credit spreads tighten, lower-rated issues typically outperform high-grade
issues.)

Demand for municipal bonds strengthened among individual and institutional
investors alike. Meanwhile, municipal bond supply dropped significantly as the
period progressed. New issue volume continued to be robust in the final months
of 2005, supporting the record pace of issuance during the calendar year (more
than $400 billion). However, volume in the first four months of 2006 fell by
nearly 25 percent compared to the same period in 2005. The decline was largely
attributable to a slowdown in refundings, which dropped by more than 55 percent
as rising interest rates discouraged municipalities from refinancing debt.
Improved fiscal conditions among state and local governments also contributed to
less significant borrowing needs. Bonds backed by insurance fell to under 50
percent of issuance in 2006, from nearly 60 percent in 2005.

Reflecting declining supply and sustained demand, municipal bonds outperformed
U.S. Treasuries with comparable maturities. That said, the relative
attractiveness of tax-exempt bonds ebbed somewhat,

and the 30-year municipal-to-Treasury yield ratio steadily declined from 97 to
88 percent. (The municipal-to-Treasury yield ratio measures the relative
attractiveness of the two sectors. The higher the ratio, the greater the
attractiveness of municipal yields relative to Treasury yields.)

Although slowing refunding activity in 2006 contributed to a drop in issuance
that was in line with national trends, New York remained a leading issuer of
municipal bonds during the period. The state enjoys a good, stable credit
outlook, and economic growth has boosted state revenues. The securities and
tourism industries count among the state's bright spots, as does the real estate
market. Growth in professional and business services have served as catalyst for
employment gains in the New York City metropolitan area and the Hudson Valley
region. Manufacturing activity, especially in upstate New York, remains a
notable pocket of economic weakness, however.

PERFORMANCE ANALYSIS

For the six-month period ended April 30, 2006, the net asset value (NAV) of
Morgan Stanley New York Quality Municipal Securities (IQN) decreased from $15.21
to $14.81 per share. Based on this change plus reinvestment of tax-free
dividends totaling $0.36 per share and a long-term capital gain distribution of
$0.308568 per share, the Trust's total NAV return was 2.29 percent. IQN's value
on the New York Stock Exchange (NYSE) moved from $13.30 to $13.50 per share
during the same period. Based on this change plus reinvestment of tax-free
dividends and distributions, the Trust's total market return was 6.64 percent.
IQN's NYSE market price was at an 8.85 percent discount to its NAV. During the
fiscal period, the Trust purchased and retired 94,800 shares of common stock at
a weighted average market discount of 9.90 percent. Past performance is no
guarantee of future results.

Monthly dividends for the second quarter of 2006, declared in March, were
unchanged at $0.06 per share. The dividend reflects the current level of the
Trust's net investment income. IQN's level of undistributed net investment
income was $0.054 per share on April 30, 2006, versus $0.075 per share six
months earlier.(1)

In anticipation of continued Fed tightening and generally higher interest rates,
the Trust made modest ongoing adjustments to its portfolio to reduce volatility.
For example, a U.S. Treasury futures strategy was used to reduce the portfolio's
duration,* as a hedge against rising rates. At the end of April, the Trust's
option-adjusted duration was 11.7 years. This duration positioning tempered the
Trust's total returns when rates declined, but helped total returns when rates
rose.

Overall, the Trust maintained a high average credit quality with nearly 75
percent of the bonds in the portfolio rated AA or higher. The Trust slightly
increased its exposure to A and BBB rated investment-grade credits; this had a
positive impact on performance as lower-rated issues outperformed high-grade
bonds. (High-grade bonds are rated AA and above.)

Purchases during the period included bonds with maturities in the 25- to 30-year
range and defensive

characteristics. Investments continued to emphasize essential service sectors
such as education, transportation, and water and sewer. Reflecting a commitment
to diversification, the Trust's net assets of approximately $86 million,
including preferred shares, were invested among 13 long-term sectors and 34
credits.

As discussed in previous reports, the total income available for distribution to
holders of common shares includes incremental income provided by the Trust's
outstanding Auction Rate Preferred Shares (ARPS). ARPS dividends reflect
prevailing short-term interest rates on maturities ranging from one week to two
years. Incremental income to holders of common shares depends on two factors:
the amount of ARPS outstanding and the spread between the portfolio's cost yield
and its ARPS auction rate and expenses. The greater the spread and the higher
the amount of ARPS outstanding, the greater the amount of incremental income
available for distribution to holders of common shares. The level of net
investment income available for distribution to holders of common shares varies
with the level of short-term interest rates. ARPS leverage also increases the
price volatility of common shares and has the effect of extending portfolio
duration.

During this six-month period, ARPS leverage contributed approximately $0.04 per
share to common-share earnings. The Trust has two ARPS series totaling $24
million, representing 28 percent of net assets, including preferred shares as of
the end of the period. At the end of April weekly ARPS yields ranged from 3.50
to 3.68 percent compared to 1.7 to 2.0 percent at the end of October 2005.

The Trust's procedure for reinvesting all dividends and distributions in common
shares is through purchases in the open market. This method helps support the
market value of the Trust's shares. In addition, we would like to remind you
that the Trustees have approved a procedure whereby the Trust may, when
appropriate, purchase shares in the open market or in privately negotiated
transactions at a price not above market value or net asset value, whichever is
lower at the time of purchase. The Trust may also utilize procedures to reduce
or eliminate the amount of ARPS outstanding, including their purchase in the
open market or in privately negotiated transactions.

- ----------------------------------------------------
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES
SHOWN. INVESTMENT RETURN, NET ASSET VALUE AND COMMON SHARE MARKET PRICE WILL
FLUCTUATE AND TRUST SHARES, WHEN SOLD, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.

There is no guarantee that any sectors mentioned will continue to perform as
discussed herein or that securities in such sectors will be held by the Trust in
the future.

(1) Income earned by certain securities in the portfolio may be subject to the
federal alternative minimum tax (AMT).

* A measure of the sensitivity of a bond's price to changes in interest rates,
expressed in years. Each year of duration represents an expected 1 percent
change in the price of a bond for every 1 percent change in interest rates. The
longer a bond's duration, the greater the effect of interest-rate movements on
its price. Typically, trusts with shorter durations perform better in
rising-interest-rate environments, while trusts with longer durations perform
better when rates decline. Duration calculations are adjusted for leverage.

<Table>
<Caption>
TOP FIVE SECTORS***

Hospital 24.1%
Transportation 18.4
Water & Sewer 18.3
Other 17.9
IDR/PCR** 15.4
</Table>

<Table>
<Caption>
LONG-TERM CREDIT ANALYSIS

Aaa/AAA 61.1%
Aa/AA 12.4
A/A 14.0
Baa/BBB 12.5
</Table>

** Industrial Development/Pollution Control Revenue

*** Does not include outstanding short futures contracts with an underlying face
amount of $2,603,906 with unrealized appreciation of $21,611.

Data as of April 30, 2006. Subject to change daily. All percentages for top five
sectors are as a percentage of net assets applicable to common shareholders. All
percentages for long-term credit analysis are as a percentage of total long-term
investments. These data are provided for informational purposes only and should
not be deemed a recommendation to buy or sell the securities mentioned. Morgan
Stanley is a full-service securities firm engaged in securities trading and
brokerage activities, investment banking, research and analysis, financing and
financial advisory services.

FOR MORE INFORMATION
ABOUT PORTFOLIO HOLDINGS

EACH MORGAN STANLEY TRUST PROVIDES A COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS IN
ITS SEMIANNUAL AND ANNUAL REPORTS WITHIN 60 DAYS OF THE END OF THE TRUST'S
SECOND AND FOURTH FISCAL QUARTERS. THE SEMIANNUAL REPORTS AND THE ANNUAL REPORTS
ARE FILED ELECTRONICALLY WITH THE SECURITIES AND EXCHANGE COMMISSION (SEC) ON
FORM N-CSRS AND FORM N-CSR, RESPECTIVELY. MORGAN STANLEY ALSO DELIVERS THE
SEMIANNUAL AND ANNUAL REPORTS TO TRUST SHAREHOLDERS AND MAKES THESE REPORTS
AVAILABLE ON ITS PUBLIC WEB SITE, WWW.MORGANSTANLEY.COM. EACH MORGAN STANLEY
TRUST ALSO FILES A COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SEC FOR THE
TRUST'S FIRST AND THIRD FISCAL QUARTERS ON FORM N-Q. MORGAN STANLEY DOES NOT
DELIVER THE REPORTS FOR THE FIRST AND THIRD FISCAL QUARTERS TO SHAREHOLDERS, NOR
ARE THE REPORTS POSTED TO THE MORGAN STANLEY PUBLIC WEB SITE. YOU MAY, HOWEVER,
OBTAIN THE FORM N-Q FILINGS (AS WELL AS THE FORM N-CSR AND N-CSRS FILINGS) BY
ACCESSING THE SEC'S WEB SITE, HTTP://WWW.SEC.GOV. YOU MAY ALSO REVIEW AND COPY
THEM AT THE SEC'S PUBLIC REFERENCE ROOM IN WASHINGTON, DC. INFORMATION ON THE
OPERATION OF THE SEC'S PUBLIC REFERENCE ROOM MAY BE OBTAINED BY CALLING THE SEC
AT (800) SEC-0330. YOU CAN ALSO REQUEST COPIES OF THESE MATERIALS, UPON PAYMENT
OF A DUPLICATING FEE, BY ELECTRONIC REQUEST AT THE SEC'S E-MAIL ADDRESS
(PUBLICINFO@SEC.GOV) OR BY WRITING THE PUBLIC REFERENCE SECTION OF THE SEC,
WASHINGTON, DC 20549-0102.

DISTRIBUTION BY MATURITY
(% of Long-Term Portfolio) As of April 30, 2006

WEIGHTED AVERAGE MATURITY: 20 YEARS(A)

<Table>

0-5 1
6-10 7
11-15 25
16-20 30
21-25 16
26-30 17
31+ 4
</Table>

(a) Where applicable maturities reflect mandatory tenders, puts and call dates.
Portfolio structure is subject to change.

CALL AND COST (BOOK) YIELD STRUCTURE
(Based on Long-Term Portfolio) As of April 30, 2006

YEARS BONDS CALLABLE -- WEIGHTED AVERAGE CALL PROTECTION: 7 YEARS

<Table>

2006(a) 0
2007 3
2008 4
2009 0
2010 2
2011 3
2012 11
2013 25
2014 30
2015 12
2016+ 10
</Table>

COST (BOOK) YIELD(B) -- WEIGHTED AVERAGE BOOK YIELD: 4.9%

<Table>

2006(a) 0
2007 6
2008 6.5
2009 0
2010 5.8
2011 4.4
2012 4.7
2013 4.7
2014 4.7
2015 4.7
2016+ 4.8
</Table>

(a) May include issues callable in previous years.

(b) Cost or "book" yield is the annual income earned on a portfolio investment
based on its original purchase price before the Trust's operating expenses.
For example, the Trust is earning a book yield of 6.0% on 3.0% of the
long-term portfolio that is callable in 2007.
Portfolio structure is subject to change.

INVESTMENT ADVISORY AGREEMENT APPROVAL

NATURE, EXTENT AND QUALITY OF SERVICES

The Board reviewed and considered the nature and extent of the investment
advisory services provided by the Investment Adviser under the Advisory
Agreement, including portfolio management, investment research and fixed income
securities trading. The Board also reviewed and considered the nature and extent
of the non-advisory, administrative services provided by the Trust's
Administrator under the Administration Agreement, including accounting,
clerical, bookkeeping, compliance, business management and planning, and the
provision of supplies, office space and utilities at the Investment Adviser's
expense. (The Investment Adviser and the Administrator together are referred to
as the "Adviser" and the Advisory and Administration Agreements together are
referred to as the "Management Agreement.") The Board also compared the nature
of the services provided by the Adviser with similar services provided by
non-affiliated advisers as reported to the Board by Lipper Inc. ("Lipper").

The Board reviewed and considered the qualifications of the portfolio managers,
the senior administrative managers and other key personnel of the Adviser who
provide the administrative and advisory services to the Trust. The Board
determined that the Adviser's portfolio managers and key personnel are well
qualified by education and/or training and experience to perform the services in
an efficient and professional manner. The Board concluded that the nature and
extent of the advisory and administrative services provided were necessary and
appropriate for the conduct of the business and investment activities of the
Trust. The Board also concluded that the overall quality of the advisory and
administrative services was satisfactory.

PERFORMANCE RELATIVE TO COMPARABLE FUNDS MANAGED BY OTHER ADVISERS

On a regular basis, the Board reviews the performance of all funds in the Morgan
Stanley Fund Complex, including the Trust, compared to their peers, paying
specific attention to the underperforming funds. In addition, the Board
specifically reviewed the Trust's performance for the one-, three- and five-year
periods ended November 30, 2005, as shown in a report provided by Lipper (the
"Lipper Report"), compared to the performance of comparable funds selected by
Lipper (the "performance peer group"). The Board also discussed with the Adviser
the performance goals and the actual results achieved in managing the Trust.
When a fund underperforms its performance peer group, the Board discusses with
the Adviser the causes of the underperformance and, where necessary, specific
changes to the fund's investment strategy or investment personnel. The Board
concluded that the Trust can reasonably be expected to be competitive with that
of its performance peer group based on recent action taken or proposed to be
taken by the Adviser with respect to the Trust's investment strategy and/or
investment personnel.

FEES RELATIVE TO OTHER PROPRIETARY FUNDS MANAGED BY THE ADVISER WITH COMPARABLE
INVESTMENT STRATEGIES

The Board reviewed the advisory and administrative fee (together, the
"management fee") rate paid by the Trust under the Management Agreement. The
Board noted that the management fee rate was comparable to the management fee
rates charged by the Adviser to other proprietary funds it manages with
investment strategies comparable to those of the Trust.

FEES AND EXPENSES RELATIVE TO COMPARABLE FUNDS MANAGED BY OTHER ADVISERS

The Board reviewed the management fee rate and total expense ratio of the Trust
as compared to the average management fee rate and average total expense ratio
for funds, selected by Lipper (the "expense peer group"), managed by other
advisers with investment strategies comparable to those of the Trust, as shown
in the Lipper Report. The Board concluded that the Trust's management fee rate
and total expense ratio were competitive with those of its expense peer group.

BREAKPOINTS AND ECONOMIES OF SCALE

The Board reviewed the structure of the Trust's management fee schedule under
the Management Agreement and noted that it does not include any breakpoints. The
Board considered that the Trust is a closed-end fund and, therefore, that the
Trust's assets are not likely to grow with new sales or grow significantly as a
result of capital appreciation. The Board concluded that economies of scale for
the Trust were not a factor that needed to be considered at the present time.

PROFITABILITY OF THE ADVISER AND AFFILIATES

The Board considered information concerning the costs incurred and profits
realized by the Adviser and affiliates during the last year from their
relationship with the Trust and during the last two years from their
relationship with the Morgan Stanley Fund Complex and reviewed with the Adviser
the cost allocation methodology used to determine the profitability of the
Adviser and affiliates. Based on its review of the information it received, the
Board concluded that the profits earned by the Adviser and affiliates were not
excessive in light of the advisory, administrative and other services provided
to the Trust.

FALL-OUT BENEFITS

The Board considered so-called "fall-out benefits" derived by the Adviser and
affiliates from their relationship with the Trust and the Morgan Stanley Fund
Complex, such as commissions on the purchase and sale of Trust shares and
"float" benefits derived from handling of checks for purchases and sales of
Trust shares, through a

broker-dealer affiliate of the Adviser. The Board concluded that the float
benefits were relatively small and that the commissions were competitive with
commissions of other broker-dealers.

SOFT DOLLAR BENEFITS

The Board considered whether the Adviser realizes any benefits from commissions
paid to brokers who execute securities transactions for the Trust ("soft
dollars"). The Board noted that the Trust invests only in fixed income
securities, which do not generate soft dollars.

ADVISER FINANCIALLY SOUND AND FINANCIALLY CAPABLE OF MEETING THE TRUST'S NEEDS

The Board considered whether the Adviser is financially sound and has the
resources necessary to perform its obligations under the Management Agreement.
The Board noted that the Adviser's operations remain profitable, although
increased expenses in recent years have reduced the Adviser's profitability. The
Board concluded that the Adviser has the financial resources necessary to
fulfill its obligations under the Management Agreement.

HISTORICAL RELATIONSHIP BETWEEN THE TRUST AND THE ADVISER

The Board also reviewed and considered the historical relationship between the
Trust and the Adviser, including the organizational structure of the Adviser,
the policies and procedures formulated and adopted by the Adviser for managing
the Trust's operations and the Board's confidence in the competence and
integrity of the senior managers and key personnel of the Adviser. The Board
concluded that it is beneficial for the Trust to continue its relationship with
the Adviser.

OTHER FACTORS AND CURRENT TRENDS

The Board considered the controls and procedures adopted and implemented by the
Adviser and monitored by the Trust's Chief Compliance Officer and concluded that
the conduct of business by the Adviser indicates a good faith effort on its part
to adhere to high ethical standards in the conduct of the Trust's business.

GENERAL CONCLUSION

After considering and weighing all of the above factors, the Board concluded
that it would be in the best interest of the Trust and its shareholders to
approve renewal of the Management Agreement for another year.

Morgan Stanley New York Quality Municipal Securities
PORTFOLIO OF INVESTMENTS - APRIL 30, 2006 (UNAUDITED)

<Table>
<Caption>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------

New York Tax-Exempt Municipal Bonds (132.9%)
General Obligation (7.5%)
New York City,
$ 2,000 2005 Ser F.............................................. 5.00 % 09/01/23 $ 2,063,900
1,500 2005 Ser G.............................................. 5.00 12/01/23 1,544,805
1,000 Puerto Rico, Public Improvement Refg Ser 1999............. 5.25 07/01/16 1,056,860
------------
-------
4,665,565
4,500
------------
-------
Educational Facilities Revenue (1.4%)
New York State Dormitory Authority,
405 Fordham University Ser 2002 (FGIC)...................... 5.00 07/01/21 420,718
405 Fordham University Ser 2002 (FGIC)...................... 5.00 07/01/22 420,475
------------
-------
841,193
810
------------
-------
Electric Revenue (12.9%)
Long Island Power Authority,
2,000 Ser 2003 B.............................................. 5.25 06/01/14 2,145,280
1,000 Ser 1998 A (FSA)........................................ 5.125 12/01/22 1,034,790
1,705 Ser 2004 A (Ambac)...................................... 5.00 09/01/34 1,755,042
1,000 Ser 2006 B.............................................. 5.00 12/01/35 1,024,250
Puerto Rico Electric Power Authority,
1,000 Power Ser DD (FSA)...................................... 4.50 07/01/19 1,010,750
1,000 Ser NN.................................................. 5.125 07/01/29 1,028,630
------------
-------
7,998,742
7,705
------------
-------
Hospital Revenue (24.1%)
2,000 New York City Health & Hospitals Corporation, 2003 Ser B
(Ambac) ++.............................................. 5.25 02/15/21 2,114,320
New York State Dormitory Authority,
2,500 Catholic Health Long Island - St. Francis Hospital Ser
2004.................................................... 5.10 07/01/34 2,501,650
3,000 Hospital - FHA Insured Mtge 2004 Ser A (FSA)............ 5.25 08/15/19 3,178,680
4,000 Memorial Sloan-Kettering Cancer Center 2003 Ser I....... 5.00 07/01/34 4,077,000
2,000 Montefiore Hospital FHA Insured Mtge Ser 2004 (FGIC).... 5.00 08/01/29 2,060,640
1,000 Winthrop South Nassau University Health Ser 2003 B...... 5.50 07/01/23 1,040,450
------------
-------
14,972,740
14,500
------------
-------
Industrial Development/Pollution Control Revenue (15.4%)
1,000 Nassau County Tobacco Settlement Corporation, Ser 2006.... 0.00# 06/01/26 842,650
New York City Industrial Development Agency,
2,000 IAC/Interactive Corp Ser 2005........................... 5.00 09/01/35 2,008,760
2,000 Terminal One Group Association Ser 2005 (AMT)........... 5.50 01/01/24 2,103,240
1,000 New York Counties Tobacco Trust IV, Ser 2005 A............ 5.00 06/01/45 953,040
</Table>

11
See Notes to Financial Statements

Morgan Stanley New York Quality Municipal Securities
PORTFOLIO OF INVESTMENTS - APRIL 30, 2006 (UNAUDITED) continued

<Table>
<Caption>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------

$ 1,500 New York State Energy Research & Development Authority,
Brooklyn Union Gas Co 1991 Ser D (AMT) (MBIA)........... 9.106++% 04/01/20 $ 1,692,255
1,000 TSASC Inc, Tobacco Settlement Ser 2006-1.................. 5.125 06/01/42 975,860
1,000 Westchester Tobacco Asset Securitization Corporation, Ser
2005.................................................... 5.125 06/01/45 972,010
------------
-------
9,547,815
9,500
------------
-------
Mortgage Revenue - Multi-Family (3.7%)
2,270 New York State Housing Finance Agency, 1996 Ser A Refg
------- (FSA)................................................... 6.10 11/01/15 2,319,395
------------
Mortgage Revenue - Single Family (0.3%)
200 New York State Mortgage Agency, 27th Ser (AMT)............ 5.875 04/01/30 205,262
------- ------------
Nursing & Health Related Facilities Revenue (1.7%)
1,000 New York State Dormitory Authority, Dept of Health Ser
------- 2004.................................................... 5.00 07/01/23 1,030,030
------------
Public Facilities Revenue (9.6%)
1,000 Montgomery County Industrial Development Agency, Hamilton
Fulton Montgomery BOCES Ser 2004 A (XLCA)............... 5.00 07/01/34 1,024,200
1,000 New York City Cultural Resource Trust, Wildlife
Conservation Society Ser 2004 (FGIC).................... 5.00 02/01/34 1,027,950
New York State Dormitory Authority,
1,795 New York School Districts 2003 Ser A.................... 5.25 07/01/20 1,894,281
1,000 New York School Districts 2002 Ser D (MBIA)............. 5.00 10/01/30 1,026,190
1,000 Niagara Falls City School District, Ser 2005 COPs (FSA)... 5.00 06/15/28 1,028,370
------------
-------
6,000,991
5,795
------------
-------
Transportation Facilities Revenue (18.4%)
Metropolitan Transportation Authority,
2,000 Dedicated Tax Fund Refg Ser 2002 A (FSA)................ 5.25 11/15/24 2,125,320
4,000 Transportation Ser 2003 A (FSA)......................... 5.00 11/15/25 4,137,040
2,500 New York State Thruway Authority, Personal Income Tax
Transportation Ser 2003 A (MBIA)........................ 5.00 03/15/21 2,596,075
Triborough Bridge & Tunnel Authority,
1,500 Ser 2003 A (Ambac)...................................... 5.00 11/15/28 1,547,025
1,000 Refg Sub Ser E (MBIA)................................... 5.00 11/15/32 1,025,490
------------
-------
11,430,950
11,000
------------
-------
Water & Sewer Revenue (18.3%)
Nassau County Sewer & Storm Water Finance Authority,
500 2004 Ser B (MBIA)....................................... 5.00 10/01/22 520,020
500 2004 Ser B (MBIA)....................................... 5.00 10/01/23 518,950
</Table>

12
See Notes to Financial Statements

Morgan Stanley New York Quality Municipal Securities
PORTFOLIO OF INVESTMENTS - APRIL 30, 2006 (UNAUDITED) continued

<Table>
<Caption>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------

New York City Municipal Water Finance Authority,
$ 2,000 2003 Ser A.............................................. 5.375 % 06/15/18 $ 2,140,360
5,000 2005 Ser B (Ambac)...................................... 5.00 06/15/28 5,175,100
1,940 New York State Environmental Facilities Corporation, Clean
Water
Ser 2003 B.............................................. 5.00 12/15/22 2,024,623
1,000 Niagara Falls Public Water Authority, Ser 2005 (XLCA)..... 5.00 07/15/26 1,032,350
------------
-------
11,411,403
10,940
------------
-------
Other Revenue (17.9%)
2,000 Battery Park City Authority, Ser 2003A.................... 5.00 11/01/24 2,078,740
New York City Transitional Finance Authority,
1,000 2004 Ser C.............................................. 5.00 02/01/21 1,040,680
1,000 Refg 2003 Ser D (MBIA).................................. 5.25 02/01/21 1,059,290
2,000 Refg 2003 Ser A......................................... 5.50# 11/01/26 2,150,780
2,000 New York Local Government Assistance Corporation, Ser 1993
C....................................................... 5.50 04/01/17 2,194,420
1,500 Sales Tax Asset Receivable Corporation, 2005 Ser A
(Ambac)................................................. 5.00 10/15/29 1,556,025
1,000 Tobacco Settlement Financing Corporation, State
Contingency Ser 2003 B-1C............................... 5.50 06/01/21 1,070,430
------------
-------
11,150,365
10,500
------------
-------
Refunded (1.7%)
1,000 New York State Thruway Authority, Local Hwy & Bridge Ser
------- 2000 A (FSA)............................................ 5.75 04/01/10+ 1,084,980
------------
79,720 Total New York Short-Term Tax-Exempt Municipal Obligations (Cost
$81,313,365)................................................................. 82,659,431
------------
-------
New York Short-Term Tax-Exempt Municipal Obligations
(3.7%)
1,500 New York City, Ser A-10 (Demand 05/01/06)................. 3.78* 08/01/17 1,500,000
800 New York City Transitional Finance Authority, Future Tax
Fiscal 2003 Ser C Subser C4 (Demand 05/01/06)........... 3.78* 11/01/22 800,000
------------
-------
2,300 Total New York Short-Term Tax-Exempt Municipal Obligations (Cost
$2,300,000).................................................................. 2,300,000
------------
-------
$82,020 Total Investments (Cost $83,613,365) (a)(b).......................... 136.6% 84,959,431
=======
Other Assets In Excess Of Liabilities................................ 2.0 1,259,794

Preferred Shares of Beneficial Interest.............................. (38.6) (24,000,000)
----- ------------
Net Assets Applicable to Common Shareholders......................... 100.0% $ 62,219,225
===== ============
</Table>

13
See Notes to Financial Statements

Morgan Stanley New York Quality Municipal Securities
PORTFOLIO OF INVESTMENTS - APRIL 30, 2006 (UNAUDITED) continued

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

<Table>

Note: The categories of investments are shown as a percentage of
net assets applicable to common shareholders.

AMT Alternative Minimum Tax
COPs Certificate of Participation
FHA Federal Housing Authority
+ Prerefunded to call date shown
++ A portion of this security has been physically segregated in
connection with open futures contracts in the amount of
$10,000
++ Current coupon rate for inverse floating rate municipal
obligations. This rate resets periodically as the auction
rate on the related security changes. Positions in inverse
floating rate municipal obligations have a total value of
$1,692,255 which represents 2.7% of net assets applicable to
common shareholders
* Current coupon of variable rate demand obligation
# Security is a "Step up" bond where the coupon increases on a
predetermined future date
(a) Securities have been designated as collateral in an amount
equal to $2,615,586 in connection with the open futures
contracts
(b) The aggregate cost for federal income tax purposes is
$83,613,329. The aggregate gross unrealized appreciation is
$1,541,772 and the aggregate gross unrealized depreciation
is $195,670, resulting in net unrealized appreciation of
$1,346,102.

Bond Insurance:
- ---------------
Ambac Ambac Assurance Corporation
FGIC Financial Guaranty Insurance Company
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation
XLCA XL Capital Assurance Inc.
</Table>

FUTURES CONTRACTS OPEN AT APRIL 30, 2006:

<Table>
<Caption>
NUMBER OF DESCRIPTION, DELIVERY UNDERLYING FACE UNREALIZED
CONTRACTS LONG/SHORT MONTH AND YEAR AMOUNT AT VALUE APPRECIATION
- --------------------------------------------------------------------------------

25 Short U.S. Treasury Notes
5 year June 2006 $(2,603,906) $21,611
=======
</Table>

14
See Notes to Financial Statements

Morgan Stanley New York Quality Municipal Securities
FINANCIAL STATEMENTS

Statement of Assets and Liabilities
April 30, 2006 (unaudited)

<Table>

Assets:
Investments in securities, at value
(cost $83,613,365)................. $84,959,431
Cash................................. 56,700
Interest receivable.................. 1,290,620
Prepaid expenses and other assets.... 31,513
-----------
Total Assets..................... 86,338,264
-----------
Liabilities:
Payable for:
Common shares of beneficial
interest repurchased........... 43,281
Investment advisory fee.......... 19,241
Administration fee............... 5,701
Transfer agent fee............... 4,292
Variation margin................. 3,906
Accrued expenses and other
payables........................... 42,618
-----------
Total Liabilities................ 119,039
-----------
Preferred shares of beneficial
interest (at liquidation value)
(1,000,000 shares authorized of
non-participating $.01 par value,
480 shares outstanding)............ 24,000,000
-----------
Net Assets Applicable to Common
Shareholders................... $62,219,225
===========
Composition of Net Assets Applicable
to Common Shareholders:
Common shares of beneficial interest
(unlimited shares authorized of
$.01 par value, 4,200,468 shares
outstanding)....................... $60,545,098
Net unrealized appreciation.......... 1,367,677
Accumulated undistributed net
investment income.................. 228,088
Accumulated undistributed net
realized gain...................... 78,362
-----------
Net Assets Applicable to Common
Shareholders................... $62,219,225
===========
Net Asset Value Per Common Share
($62,219,225 divided by 4,200,468
common shares outstanding)........... $14.81
===========
</Table>

Statement of Operations
For the six months ended April 30, 2006 (unaudited)

<Table>

Net Investment Income:
Interest Income....................... $2,033,694
----------
Expenses
Investment advisory fee............... 118,055
Auction commission fees............... 35,870
Administration fee.................... 34,979
Professional fees..................... 26,339
Shareholder reports and notices....... 11,490
Registration fees..................... 9,506
Transfer agent fees and expenses...... 5,776
Auction agent fees.................... 4,068
Custodian fees........................ 2,932
Trustees' fees and expenses........... 558
Other................................. 14,373
----------
Total Expenses.................... 263,946

Less: expense offset.................. (2,772)
----------
Net Expenses...................... 261,174
----------
Net Investment Income............. 1,772,520
----------
Net Realized and Unrealized Gain
(Loss):
Net Realized Gain (Loss) on:
Investments........................... (20,856)
Futures contracts..................... 311,363
----------
Net Realized Gain................. 290,507
----------
Net Change in Unrealized Appreciation/
Depreciation on:
Investments........................... (506,966)
Futures contracts..................... (190,528)
----------
Net Depreciation.................. (697,494)
----------
Net Loss.......................... (406,987)
----------
Dividends to preferred shareholders
from net investment income.......... (331,550)
----------
Net Increase.......................... $1,033,983
==========
</Table>

15
See Notes to Financial Statements

Morgan Stanley New York Quality Municipal Securities
FINANCIAL STATEMENTS continued

Statements of Changes in Net Assets

<Table>
<Caption>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
APRIL 30, 2006 OCTOBER 31, 2005
-------------- ----------------
(unaudited)

Increase (Decrease) in Net Assets:
Operations:
Net investment income....................................... $ 1,772,520 $ 3,592,863
Net realized gain........................................... 290,507 1,005,681
Net change in unrealized appreciation/depreciation.......... (697,494) (1,532,378)
Dividends to preferred shareholders from net investment
income.................................................... (331,550) (395,562)
----------- -----------
Net Increase............................................ 1,033,983 2,670,604
----------- -----------
Dividends and Distributions to Common Shareholders from:
Net investment income....................................... (1,534,096) (3,256,833)
Net realized gain........................................... (1,322,266) (325,948)
----------- -----------
Total Dividends and Distributions....................... (2,856,362) (3,582,781)
----------- -----------

Decrease from transactions in common shares of beneficial
interest.................................................. (1,281,376) (1,407,766)
----------- -----------
Net Decrease............................................ (3,103,755) (2,319,943)
Net Assets Applicable to Common Shareholders:
Beginning of period......................................... 65,322,980 67,642,923
----------- -----------
End of Period
(Including accumulated undistributed net investment income
of $228,088 and $321,214, respectively)..................... $62,219,225 $65,322,980
=========== ===========
</Table>

16
See Notes to Financial Statements

Morgan Stanley New York Quality Municipal Securities
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2006 (UNAUDITED)

1. Organization and Accounting Policies

Morgan Stanley New York Quality Municipal Securities (the "Trust") is registered
under the Investment Company Act of 1940, as amended, as a non-diversified,
closed-end management investment company. The Trust's investment objective is to
provide current income which is exempt from federal, New York State and New York
City income taxes. The Trust was organized as a Massachusetts business trust on
March 3, 1993 and commenced operations on September 29, 1993.

The following is a summary of significant accounting policies:

A. Valuation of Investments -- (1) portfolio securities are valued by an outside
independent pricing service approved by the Trustees. The pricing service uses
both a computerized grid matrix of tax-exempt securities and evaluations by its
staff, in each case based on information concerning market transactions and
quotations from dealers which reflect the mean between the last reported bid and
asked price. The portfolio securities are thus valued by reference to a
combination of transactions and quotations for the same or other securities
believed to be comparable in quality, coupon, maturity, type of issue, call
provisions, trading characteristics and other features deemed to be relevant.
The Trustees believe that timely and reliable market quotations are generally
not readily available for purposes of valuing tax-exempt securities and that the
valuations supplied by the pricing service are more likely to approximate the
fair value of such securities; (2) futures are valued at the latest sale price
on the commodities exchange on which they trade unless it is determined that
such price does not reflect their market value, in which case they will be
valued at their fair value as determined in good faith under procedures
established by and under the supervision of the Trustees; and (3) short-term
debt securities having a maturity date of more than sixty days at time of
purchase are valued on a mark-to-market basis 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.
Discounts are accreted and premiums are amortized over the life of the
respective securities. Interest income is accrued daily.

C. Futures Contracts -- A futures contract is an agreement between two parties
to buy and sell financial instruments or contracts based on financial indices at
a set price on a future date. Upon entering into such a contract, the Trust is
required to pledge to the broker cash, U.S. Government securities or other
liquid portfolio securities equal to the minimum initial margin requirements of
the

Morgan Stanley New York Quality Municipal Securities
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2006 (UNAUDITED) continued

applicable futures exchange. Pursuant to the contract, the Trust agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in the value of the contract. Such receipts or payments known as
variation margin are recorded by the Trust as unrealized gains and losses. Upon
closing of the contract, the Trust realizes a gain or loss equal to the
difference between the value of the contract at the time it was opened and the
value at the time it was closed.

D. Federal Income Tax Policy -- It is the Trust's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable and nontaxable
income to its shareholders. Accordingly, no federal income tax provision is
required.

E. Dividends and Distributions to Shareholders -- Dividends and distributions to
shareholders are recorded on the ex-dividend date.

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

2. Investment Advisory/Administration Agreements

Pursuant to an Investment Advisory Agreement with Morgan Stanley Investment
Advisors Inc. (the "Investment Adviser"), the Trust pays the Investment Adviser
an advisory fee, calculated weekly and payable monthly, by applying the annual
rate of 0.27% to the Trust's weekly total net assets including preferred shares.

Pursuant to an Administration Agreement with Morgan Stanley Services Company
Inc. (the "Administrator"), an affiliate of the Investment Adviser, the Trust
pays an administration fee, calculated weekly and payable monthly, by applying
the annual rate of 0.08% to the Trust's weekly net assets including preferred
shares.

3. Security Transactions and Transactions with Affiliates

The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended April 30, 2005 aggregated
$8,723,450 and $11,015,823, respectively. Included in the aforementioned are
purchases of $2,232,000 with other Morgan Stanley funds.

Morgan Stanley Trust, an affiliate of the Investment Adviser and Administrator,
is the Trust's transfer agent.

Morgan Stanley New York Quality Municipal Securities
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2006 (UNAUDITED) continued

The Trust has an unfunded Deferred Compensation Plan (the "Compensation Plan")
which allows each independent Trustee to defer payment of all, or a portion, of
the fees he receives for serving on the Board of Trustees. Each eligible Trustee
generally may elect to have the deferred amounts credited with a return equal to
the total return on one or more of the Morgan Stanley funds that are offered as
investment options under the Compensation Plan. Appreciation/depreciation and
distributions received from these investments are recorded with an offsetting
increase/decrease in the deferred compensation obligation and do not affect the
net asset value of the Trust.

4. Preferred Shares of Beneficial Interest

The Trust is authorized to issue up to 1,000,000 non-participating preferred
shares of beneficial interest having a par value of $.01 per share, in one or
more series, with rights as determined by the Trustees, without approval of the
common shareholders. The Trust has issued Series 1 and 2 Auction Rate Preferred
Shares ("preferred shares") which have a liquidation value of $50,000 per share
plus the redemption premium, if any, plus accumulated but unpaid dividends,
whether or not declared, thereon to the date of distribution. The Trust may
redeem such shares, in whole or in part, at the original purchase price of
$50,000 per share plus accumulated but unpaid dividends, whether or not
declared, thereon to the date of redemption.

Dividends, which are cumulative, are reset through auction procedures.

<Table>
<Caption>
NEXT
AMOUNT RESET RANGE OF
SERIES SHARES* IN THOUSANDS* RATE* DATE DIVIDEND RATES**
- ------ ------- ------------- ------ -------- ----------------

1 260 $13,000 3.50 % 05/02/06 1.70%- 3.50 %
2 220 11,000 3.683 05/05/06 2.00- 3.683
</Table>

- ---------------------
* As of April 30, 2006.
** For the six months ended April 30, 2006.

Subsequent to April 30, 2006 and up through June 2, 2006, the Trust paid
dividends to Series 1 and 2 at rates ranging from 2.92% to 3.50%, in the
aggregate amount of $76,419.

The Trust is subject to certain restrictions relating to the preferred shares.
Failure to comply with these restrictions could preclude the Trust from
declaring any distributions to common shareholders or purchasing common shares
and/or could trigger the mandatory redemption of preferred shares at liquidation
value.

The preferred shares, which are entitled to one vote per share, generally vote
with the common shares but vote separately as a class to elect two Trustees and
on any matters affecting the rights of the preferred shares.

Morgan Stanley New York Quality Municipal Securities
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2006 (UNAUDITED) continued

5. Common Shares of Beneficial Interest

Transactions in common shares of beneficial interest were as follows:

<Table>
<Caption>
CAPITAL
PAID IN
EXCESS OF
SHARES PAR VALUE PAR VALUE
--------- --------- -----------

Balance, October 31, 2004................................... 4,398,363 $43,983 $63,190,257
Treasury shares purchased and retired (weighted average
discount 11.28%)*......................................... (103,095) (1,031) (1,406,735)
--------- ------- -----------
Balance, October 31, 2005................................... 4,295,268 42,952 61,783,522
Treasury shares purchased and retired (weighted average
discount 9.90%)*.......................................... (94,800) (948) (1,280,428)
--------- ------- -----------
Balance, April 30, 2006..................................... 4,200,468 $42,004 $60,503,094
========= ======= ===========
</Table>

- ---------------------
* The Trustees have voted to retire the shares purchased.

6. Dividends to Common Shareholders

On March 28, 2006, the Trust declared the following dividends from net
investment income:

<Table>
<Caption>
AMOUNT RECORD PAYABLE
PER SHARE DATE DATE
- --------- ------------ -------------

$0.06 May 5, 2006 May 19, 2006
$0.06 June 9, 2006 June 23, 2006
</Table>

7. Expense Offset

The expense offset represents a reduction of the custodian and transfer agent
fees and expenses for earnings on cash balances maintained by the Trust.

8. Risks Relating to Certain Financial Instruments

The Trust may invest a portion of its assets in residual interest bonds, which
are inverse floating rate municipal obligations. The prices of these securities
are subject to greater market fluctuations during periods of changing prevailing
interest rates than are comparable fixed rate obligations.

To hedge against adverse interest rate changes, the Trust may invest in
financial futures contracts or municipal bond index futures contracts ("futures
contracts").

These futures contracts involve elements of market risk in excess of the amount
reflected in the Statement of Assets and Liabilities. The Trust bears the risk
of an unfavorable change in the value of the underlying securities. Risks may
also arise upon entering into these contracts from the potential inability of
the counterparties to meet the terms of their contracts.

Morgan Stanley New York Quality Municipal Securities
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2006 (UNAUDITED) continued

9. Federal Income Tax Status

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 tax purposes are reported as distributions of paid-in-capital.

As of October 31, 2005, the Trust had temporary book/tax differences primarily
attributable to book amortization of discounts on debt securities,
mark-to-market of open futures contracts and dividend payable.

Morgan Stanley New York Quality Municipal Securities
FINANCIAL HIGHLIGHTS

Selected ratios and per share data for a common share of beneficial interest
outstanding throughout each period:

<Table>
<Caption>
FOR THE SIX FOR THE YEAR ENDED OCTOBER 31
MONTHS ENDED --------------------------------------------------------------
APRIL 30, 2006 2005 2004 2003 2002 2001
-------------- ---------- ---------- ---------- ---------- ----------
(unaudited)

Selected Per Share Data:
Net asset value, beginning of period............ $15.21 $15.38 $15.00 $15.07 $14.88 $13.81
------ ------ ------ ------ ------ ------
Income (loss) from investment operations:
Net investment income*...................... 0.42 0.82 0.84 0.89 0.92 0.92
Net realized and unrealized gain (loss)..... (0.10) (0.12) 0.40 (0.09) 0.11 0.95
Common share equivalent of dividends paid to
preferred shareholders*..................... (0.08) (0.09) (0.08) (0.10) (0.10) (0.15)
------ ------ ------ ------ ------ ------
Total income from investment operations......... 0.24 0.61 1.16 0.70 0.93 1.72
------ ------ ------ ------ ------ ------
Less dividends and distributions from:
Net Investment income....................... (0.36) (0.75) (0.81)** (0.81) (0.78) (0.69)
Net realized gain........................... (0.31) (0.07) -- -- -- --
------ ------ ------ ------ ------ ------
Total dividends and distributions............... (0.67) (0.82) (0.81) (0.81) (0.78) (0.69)
------ ------ ------ ------ ------ ------
Anti-dilutive effect of acquiring treasury
shares*........................................ 0.03 0.04 0.03 0.04 0.04 0.04
------ ------ ------ ------ ------ ------
Net asset value, end of period.................. $14.81 $15.21 $15.38 $15.00 $15.07 $14.88
====== ====== ====== ====== ====== ======
Market value, end of period..................... $13.50 $13.30 $13.72 $13.38 $13.29 $13.25
====== ====== ====== ====== ====== ======
Total Return+................................... 6.64%(1) 2.93% 8.81% 6.91% 6.25% 18.29%
Ratios to Average Net Assets of Common
Shareholders:
Total expenses (before expense offset).......... 0.83%(2)(3) 0.91%(3) 0.91%(3) 0.89%(3) 0.85%(3) 0.80%(3)
Net investment income before preferred stock
dividends...................................... 5.58%(2) 5.36% 5.53% 5.86% 6.21% 6.37%
Preferred stock dividends....................... 1.04%(2) 0.59% 0.56% 0.67% 0.68% 1.06%
Net investment income available to common
shareholders................................... 4.54%(2) 4.77% 4.97% 5.19% 5.53% 5.31%
Supplemental Data:
Net assets applicable to common shareholders,
end of period, in thousands.................... $62,219 $65,323 $67,643 67,509 $69,421 $70,731
Asset coverage on preferred shares at end of
period......................................... 359% 372% 382% 381% 389% 395%
Portfolio turnover rate......................... 10%(1) 27% 26% 38% 20% 9%
</Table>

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

<Table>

* The per share amounts were computed using an average number
of shares outstanding during the period.
** Includes capital gain distribution of $0.001 per share.
+ Total return is based upon the current market value on the
last day of each period reported. Dividends are assumed to
be reinvested at the prices obtained under the Trust's
dividend reinvestment plan. Total return does not reflect
brokerage commissions.
(1) Not annualized.
(2) Annualized.
(3) Does not reflect the effect of expense offset of 0.01%.
</Table>

22
See Notes to Financial Statements

Morgan Stanley New York Quality Municipal Securities
REVISED INVESTMENT POLICY

On August 24, 2005, the Trustees of Morgan Stanley New York Quality Municipal
Securities (the "Trust") approved a change to the Trust's investment policy with
respect to inverse floating rate municipal obligations whereby the Trust now
would be permitted to invest up to 15% of its assets in inverse floating rate
municipal obligations. The inverse floating rate municipal obligations in which
the Trust will invest are typically created through a division of a fixed rate
municipal obligation into two separate instruments, a short-term obligation and
a long-term obligation. The interest rate on the short-term obligation is set at
periodic auctions. The interest rate on the long-term obligation is the rate the
issuer would have paid on the fixed income obligation: (i) plus the difference
between such fixed rate and the rate on the short-term obligation, if the
short-term rate is lower than the fixed rate; or (ii) minus such difference if
the interest rate on the short-term obligation is higher than the fixed rate.
The interest rates on these obligations generally move in the reverse direction
of market interest rates. If market interest rates fall, the interest rate on
the obligation will increase and if market interest rates increase, the interest
rate on the obligation will fall. Inverse floating rate municipal obligations
offer the potential for higher income than is available from fixed rate
obligations of comparable maturity and credit rating. They also carry greater
risks. In particular, the prices of inverse floating rate municipal obligations
are more volatile, i.e., they increase and decrease in response to changes in
interest rates to a greater extent than comparable fixed rate obligations.

TRUSTEES

Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
James F. Higgins
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael E. Nugent
Fergus Reid

OFFICERS

Charles A. Fiumefreddo
Chairman of the Board

Ronald E. Robison
President and Principal Executive Officer

J. David Germany
Vice President

Dennis F. Shea
Vice President

Barry Fink
Vice President

Amy R. Doberman
Vice President

Carsten Otto
Chief Compliance Officer

Stefanie V. Chang Yu
Vice President

Francis J. Smith
Treasurer and Chief Financial Officer

Mary E. Mullin
Secretary

TRANSFER AGENT

Morgan Stanley Trust
Harborside Financial Center, Plaza Two
Jersey City, New Jersey 07311

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Deloitte & Touche LLP
Two World Financial Center
New York, New York 10281

INVESTMENT ADVISER

Morgan Stanley Investment Advisors Inc.
1221 Avenue of the Americas
New York, New York 10020

The financial statements included herein have been taken from the records of the
Trust without examination by the independent auditors and accordingly they do
not express an opinion thereon.

Investments and services offered through Morgan Stanley DW Inc., member SIPC.

[MORGAN STANLEY LOGO]

MORGAN STANLEY FUNDS

Morgan Stanley
New York Quality
Municipal Securities

Semiannual ReportApril 30, 2006

[MORGAN STANLEY LOGO]

IQNRPT-38583RPT-RA06-00485P-Y04/06

Item 2. Code of Ethics.